Sterling Financial begins share reconstruction to boost market efficiency as total assets hit N4.67trn

Sterling Financial Holdings Company Plc has commenced its approved share capital reconstruction exercise, consolidating every 10 existing ordinary shares into one new ordinary share as part of efforts to improve capital efficiency and strengthen its appeal to investors.

Sterling Financial said the exercise follows the expansion of its equity base through multiple capital raises and is aimed at creating a more efficient share structure, supporting strategic growth and enhancing its position among institutional and retail investors.

The move comes after the financial services group recorded strong financial performance in the first half of 2026, with profit after tax rising by 20.4 per cent to N50.3 billion.

The company also reported gross earnings of N279.6 billion, while total assets grew to N4.67 trillion. Shareholders’ funds increased by 27.8 per cent to N547.7 billion during the period.

Sterling Financial, in a statement on Saturday, said the reconstruction will help improve price discovery, make per-share performance easier to assess and support better comparisons with industry peers.

Sterling Financial said trading in the company’s shares on the Nigerian Exchange Limited (NGX) was temporarily suspended on Wednesday, September 23, 2026, to allow the Central Securities Clearing System Plc (CSCS) and Pace Registrars Limited reconcile shareholders’ holdings and update the register.

The company noted that the suspension is expected to last for up to 10 working days, ending Wednesday, October 7, 2026, after which trading will resume following confirmation by the NGX.

Under the approved arrangement, Sterling Financial said its issued ordinary shares will reduce from 68.5 billion shares to 6.85 billion shares, while each share will retain its nominal value of 50 kobo.

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Sterling Financial clarified that the exercise does not amount to a new capital raise or cash distribution, and that shareholders’ total funds will remain unchanged.

It stated: “For individual shareholders, every 10,000 existing shares will become 1,000 reconstructed shares, with a corresponding tenfold adjustment to the reference price. This preserves the calculated holding value at the point of adjustment. Actual trading prices may rise or fall when trading resumes.

“Voting and economic interests will continue in proportion to reconstructed holdings. Accrued dividend entitlements remain intact. Future dividends, when declared, will be calculated on the reconstructed share base. The reconstruction does not itself determine the amount of any future dividend.”

The company said the reconstruction was approved by shareholders at the company’s Annual General Meeting on June 9, 2026, with regulatory approvals obtained and confirmed by an order of the Federal High Court dated September 22, 2026.

Sterling Financial added that eligible shareholders do not need to apply or make payments, as reconstructed shares will be automatically credited electronically through valid CSCS and stockbroker accounts.

Holders of physical share certificates were advised to contact Pace Registrars and licensed stockbrokers for assistance in converting their holdings.