Sterling Financial HoldCo has received approval from the Central Bank of Nigeria (CBN) for its N75 billion capital increase. The approval, announced on Friday, finalises the company’s capital infusion, which began with a private placement in September 2024.
Sterling HoldCo initiated a rights issue in October 2024, offering current shareholders the opportunity to increase their stakes in the company.
The response to the Rights Issue has been strong, demonstrating the trust and confidence investors have in the business. Regulatory approval for the rights issue process is now in progress.
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The company also plans to go public in 2025 to meet the CBN’s higher capital requirements.
Group CEO Yemi Odubiyi welcomed the approval, calling it a validation of the company’s performance and strategic direction.
“This milestone reflects the confidence of regulators and stakeholders in our vision to redefine financial services in Nigeria and beyond. Our enhanced capital base empowers us to pursue transformative opportunities, deliver sustainable value to all stakeholders, and drive impact across critical sectors of the Nigerian economy,” Odubiyi said.
From a merchant bank to a diversified financial holdings company
Odubiyi highlighted how the business evolved from a merchant bank to a diversified financial holdings firm. With technology and an adaptable business strategy, the company has continuously shown that it can handle market challenges and seize opportunities for growth.
In light of Sterling’s achievements, Odubiyi acknowledged the role that investors, customers, and regulators have played in the company’s growth.
“We are grateful for the unwavering support and trust in our strategy, which has been pivotal to our journey. This recapitalisation strengthens our ability to unlock new opportunities, create value, and drive economic growth,” the CEO said.
“As Sterling looks ahead, its focus remains firmly on innovation, sustainability, and value creation. With a fortified capital structure, the company is well-positioned to execute its ambitious growth plans, deepen its impact across critical sectors, and set new benchmarks for excellence in Nigeria’s financial services industry,” he stressed.
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Sterling HoldCo 2024 performance
The capital increase follows a successful 2024, with Sterling’s stock price rising 19 percent in December, adding to a remarkable 287.42 percent increase over the past three years.
Compared to the same period in 2023, the company’s earnings before taxes increased by 51 percent in the first half of 2024, while its total assets increased by 20 percent.
These findings highlight Sterling’s tenacity and capacity to produce excellent results despite Nigeria’s challenging economic environment, which is characterised by high inflation and currency instability.