Sterling Financial Holdings Company Plc (“Sterling Financial” or “the Group”) has commenced an approved reconstruction of its share capital, consolidating every 10 existing ordinary shares into one new ordinary share as part of efforts to optimise its capital structure and enhance market efficiency.
The exercise follows several rounds of equity capital raising by the Group and is designed to streamline its share structure, support strategic growth and strengthen its positioning among institutional and retail investors.
Sterling Financial enters the reconstruction exercise on the back of strong first-half financial performance, with profit after tax rising 20.4 percent to ₦50.3 billion, while gross earnings stood at ₦279.6 billion.
The Group’s total assets also rose to ₦4.67 trillion, while shareholders’ funds increased by 27.8 percent to ₦547.7 billion.
According to the Group, the share reconstruction is part of its broader strategy to optimise its capital structure while pursuing sustainable earnings growth and stronger returns.
As part of the implementation process, trading in Sterling Financial’s shares on the Nigerian Exchange Limited (NGX) was temporarily suspended on Wednesday, September 23, 2026.
The suspension is expected to last for up to 10 working days, ending Wednesday, October 7, 2026. The period will allow the Central Securities Clearing System Plc (CSCS) and Pace Registrars Limited to reconcile shareholders’ holdings and update the register.
Sterling Financial said the resumption of trading would be communicated after the process is completed and confirmed by the NGX.
The Group expects the revised share structure to promote more efficient price formation and improve the assessment of its per-share performance across reporting periods.
The reconstruction is also expected to facilitate clearer comparisons with relevant sector peers, alongside consistently adjusted financial disclosures.
Shareholders approved the exercise at the company’s Annual General Meeting held on June 9, 2026. The requisite regulatory no-objections have also been obtained, while an order of the Federal High Court dated September 22, 2026, confirmed the share reduction exercise.
Under the approved structure, Sterling Financial’s issued ordinary shares will reduce from 68,502,331,708 to 6,850,233,171 shares, with each share retaining its nominal value of 50 kobo.
The company emphasised that the reconstruction will not affect total shareholders’ funds, nor does it constitute a fresh capital raise or cash distribution.
For individual shareholders, every 10,000 existing shares will become 1,000 reconstructed shares, accompanied by a corresponding tenfold adjustment to the reference price. This is intended to preserve the calculated value of each shareholder’s holding at the point of adjustment, although actual market prices may fluctuate when trading resumes.
Voting rights and economic interests will continue in proportion to shareholders’ reconstructed holdings, while accrued dividend entitlements will remain intact.
Future dividends, when declared, will be calculated based on the reconstructed share capital. However, Sterling Financial stressed that the reconstruction itself does not determine the amount of any future dividend.
The conversion of eligible holdings will be automatic, with no application or payment required from shareholders.
Shareholders with valid CSCS account and stockbroker details will have their reconstructed shares credited electronically. Holders of physical share certificates are advised to contact Pace Registrars and a licensed stockbroker for assistance in converting their holdings into electronic form.
CSCS maintains electronic records of securities, while a Clearing House Number (CHN) identifies an investor within the system.
Holdings without valid CSCS account details will remain with Pace Registrars under a non-tradeable Registrar Identification Number pending completion of the required process.
Shareholders with outdated or incomplete records are advised to contact the registrar to update their information.
Investors with transactions awaiting settlement around the suspension period are also advised to confirm with their stockbrokers and the registrar how the approved record date and settlement cut-off apply to their holdings.
Following completion of the reconstruction, shareholders are encouraged to verify their revised balances through their stockbrokers, CSCS or Pace Registrars and promptly report any discrepancies for reconciliation.
About Sterling Financial Holdings Company Plc
Sterling Financial Holdings Company Plc (Sterling HoldCo) is a Nigerian financial services group committed to driving innovation and impact across the financial sector.
Its diversified portfolio includes Sterling Bank Limited, The Alternative Bank Limited and SterlingFI Wealth Management, among other businesses.
As a holding company, Sterling provides strategic direction, governance and shared capabilities across its subsidiaries, enabling them to focus on their respective mandates while benefiting from group-wide expertise, technology and oversight.
With a heritage spanning more than six decades, Sterling HoldCo continues to focus on financial innovation, financial inclusion and sustainable growth while creating long-term value for shareholders, employees and the communities it serves.
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