Kayode Tokede  

In the bid to  meet the Central Bank of Nigeria (CBN) new capital requirement,  Sterling Financial Holdings Company (Sterling Holdco) Plc, has commenced an N87.067 billion public offer 

The Company is offering 12.581 billion ordinary shares of 50 kobo each at N7 per share. The offer for subscription opened on September 17 and is scheduled to close on September 30.

The public offer is a strategic initiative aimed at strengthening the capital adequacy of Sterling Bank Limited, capitalising SterlingFi Wealth Management, and supporting the Group’s strategic expansion opportunities.

Speaking on the offer, the Sterling Financial Holdings Company, Yemi Adeola said, “further to our shareholders’ approval at the 2024 annual general meeting, I am pleased to report that we have completed two rounds of capital raise. In 2024, we completed a N75 billion private placement and N28.79 billion right issue, which was significantly oversubscribed by our shareholders.”

He added that, following receipt of the relevant regulatory approvals and the distribution of the proceeds from the capital raise to our banking subsidiaries, Alternative Bank has fully complied with its minimum regulatory capital requirement, while Sterling Bank only requires an additional N43 billion to retain its current license.

The company has also completed a N10.29 billion special placement which is currently undergoing the necessary approval processes for recognition as capital.

Adeola added, “The net proceeds from the offer will be applied towards the full recapitalization of Sterling Bank Limited, with a focus on expanding digital banking channels, strengthening and upgrading our technology infrastructure, and driving business growth across the Retail & SME, Commercial, and Corporate segments. A portion of the funds will also be allocated to the capitalization of our new asset management subsidiary, SterlingFI Wealth Management to support its business expansion, while the remaining will be deployed towards better positioning the Holdco to pursue further strategic expansion and revenue diversification.”

He noted, “While the Nigerian economy continues to present both challenges and opportunities, we are confident in our ability to navigate volatility while capturing growth given our proven board and management capability, diversified business model, and disciplined risk culture.

“Our strategy remains focused on deepening market share in key segments, enhancing customer experience through technology and service excellence, and maintaining prudent capital and liquidity buffers.”

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