Sterling Financial Holdings Company Plc has received approval from the Central Bank of Nigeria (CBN) to implement a public offering in 2025.
The approval is an important development for the company in its efforts to meet the apex bank’s new capital threshold.
The CBN approval was announced in a statement on Friday, December 27.
Sterling Bank first announced a capital injection process initiated through a private placement in September 2024.
Following the private placement, Sterling HoldCo also launched a Rights Issue in October, granting existing shareholders an exclusive opportunity to increase their stakes.
The Rights Issue received strong participation, reflecting shareholder confidence in the company’s strategic direction.
Regulatory approval for the rights issue is currently pending.
Sterling HoldCo plans to launch a public offering in early 2025, which will further bolster its capital base to meet CBN’s requirements.
Group Chief Executive Yemi Odubiyi described the CBN’s approval as a testament to the firm’s operational excellence and strategic vision, Punch reports.
Odubiyi said:
He also spoke about Sterling’s evolution from a merchant bank to a diversified financial holdings company.
Odubiyi noted that the company has, over the years, leveraged technology and an agile operational model to navigate market challenges and seize growth opportunities.
Sterling’s recapitalization efforts come amid a year of strong financial performance.
The company reported a 51% increase in profit before tax in the first half of 2024 compared to the same period in 2023, alongside a 20% growth in total assets.
As of December 2024, Sterling’s stock price had surged by 19%, contributing to a three-year cumulative growth of 287.42%.
In an earlier report, TimesNow.com.ng captured how Nigerian banks across various tiers worked on meeting CBN’S directives to meet new capital base
Analysts see the bank capitalisation plan as a timely economic growth stimulus for the industy.
Fidelity Bank, Access Holdings, GTCo and other banks made moves to increase their capital base.
Source: TimesNow.com.ng
