Sterling Financial Holdings Company Plc has begun a 90 percent reduction in its issued share count, moving to reshape its equity structure as the financial services group positions its expanding balance sheet for the next phase of growth.
The restructuring will consolidate every 10 existing ordinary shares into one new share, cutting Sterling Financial’s issued shares from 68.5 billion to 6.85 billion.
The move comes against the backdrop of a notably larger financial base. Sterling Financial reported a 20.4 percent increase in first-half profit after tax to N50.3 billion, while gross earnings reached N279.6 billion. Total assets climbed to N4.67 trillion and shareholders’ funds rose 27.8 percent to N547.7 billion.
The group is seeking to use the reconstruction to simplify its equity structure and make its performance more readily comparable for investors, particularly as its balance sheet and earnings continue to expand.
Trading in the company’s shares on the Nigerian Exchange Limited was suspended on September 23 to facilitate the adjustment. The suspension is expected to last for up to 10 working days, through October 7, while the Central Securities Clearing System and Pace Registrars reconcile holdings and update the shareholder register.
NGX will announce the resumption of trading once the reconstruction has been completed and confirmed.
The reduction in the number of shares does not amount to a fresh capital raise, nor does it change the total shareholders’ funds.
Instead, the exercise changes the denomination of shareholders’ ownership.
An investor holding 10,000 Sterling Financial shares before the reconstruction will hold 1,000 shares afterwards. The reference price will be adjusted by the same factor, meaning the restructuring itself is not designed to create an immediate gain or loss in the value of an investor’s holding.
The actual market price after trading resumes, however, will depend on buying and selling activity and broader market conditions.
Sterling Financial said the revised structure should support more efficient price formation and strengthen its appeal to both institutional and retail investors.
It also expects the reconstruction to make per-share performance easier to evaluate across reporting periods and facilitate comparisons with other companies in the financial-services sector.
That consideration becomes increasingly relevant as the group reports stronger earnings from a substantially expanded capital base.
The share reconstruction follows multiple rounds of capital raising that expanded Sterling Financial’s equity base.
Rather than introducing new capital through the latest exercise, the company is now rationalising the resulting share structure.
The distinction is important for investors. While the number of shares will fall sharply, shareholders’ proportional ownership of the company will remain unchanged.
Voting and economic interests will continue in proportion to reconstructed holdings, while accrued dividend entitlements will remain intact.
Future dividends, when declared, will be calculated on the new share base. The reconstruction itself, however, does not determine whether a dividend will be declared or how much shareholders will receive.
For most shareholders, the transition will occur automatically.
Investors with valid CSCS accounts and stockbroker details will have their reconstructed shares credited electronically without making an application or paying a fee.
Those holding physical certificates will need to contact Pace Registrars and a licensed stockbroker to facilitate conversion into electronic form.
The exercise also places renewed emphasis on the accuracy of shareholder records.
Investors without valid CSCS account details will have their holdings maintained by Pace Registrars under a non-tradeable Registrar Identification Number until the necessary requirements are completed.
Shareholders with outdated or incomplete records have been advised to update their information with the registrar.
Investors with transactions awaiting settlement around the suspension period will also need to confirm with their stockbrokers and the registrar how the relevant record date and settlement cut-off affect their holdings.
Sterling Financial shareholders approved the reconstruction at the company’s Annual General Meeting on June 9, 2026.
The exercise subsequently received the required regulatory no-objections, while a Federal High Court order dated September 22 confirmed the share reduction.
The next important market event will be the resumption of trading.
Although the reference price will be adjusted to reflect the ten-for-one consolidation, the market will determine the actual trading price once Sterling Financial returns to the NGX.
With profit after tax above N50 billion, assets of N4.67 trillion and shareholders’ funds approaching N550 billion, Sterling Financial is entering the new trading phase with a substantially larger financial footprint, and a share structure designed to reflect it more efficiently.
