Sterling Financial Holdings share capital reconstruction

Sterling Financial Holdings Company Plc initiated a share capital reconstruction to consolidate its equity structure. The process involved a 90 percent reduction in issued shares, consolidating every ten existing ordinary shares into one new share, which reduced the total number of outstanding shares from 68.5 billion to 6.85 billion.

The restructuring followed a period of financial growth where the group reported a 20.4 percent increase in first-half profit after tax. To facilitate the adjustment, trading of the company’s shares on the Nigerian Exchange Limited was suspended for approximately ten working days to allow for the reconciliation of holdings by the Central Securities Clearing System and Pace Registrars.

Following the suspension, trading resumed on the Nigerian Exchange with shares relisted at a reference price of N77 per share, a mechanical increase from the pre-suspension price of N7.70. The reconstruction, which received shareholder approval and regulatory clearance, did not dilute ownership or change the company’s total market capitalization.