Sterling Financial Holdings Company Plc (Sterling HoldCo) has launched an approved share‑capital reconstruction on Wednesday, 23 September 2026, consolidating every ten existing ordinary shares into one new ordinary share. Trading of the group’s shares on the Nigerian Exchange Limited (NGX) was temporarily suspended for up to ten working days, with the suspension set to run through Wednesday, 7 October 2026, to allow the Central Securities Clearing System Plc (CSCS) and Pace Registrars Limited to reconcile holdings and update the shareholder register.
The reconstruction is intended to improve the efficiency of the company’s capital structure, support its strategic growth plans and enhance its appeal to both institutional and retail investors. While the total shareholders’ funds will remain unchanged, the exercise will reduce the issued share capital from roughly ₦34.25 billion to ₦3.43 billion, transferring about ₦30.83 billion to a Share Reconstruction Reserve.
Sterling entered the restructuring phase after reporting a 20.4 percent rise in profit after tax to ₦50.3 billion for the first half of 2026, on gross earnings of ₦279.6 billion. Total assets reached ₦4.67 trillion and shareholders’ funds grew 27.8 percent to ₦547.7 billion, bolstered by a recent capital raise.
Under the new structure, the number of issued ordinary shares will fall from 68,502,331,708 to 6,850,233,171, each retaining a nominal value of 50 kobo. For individual investors, every 10,000 existing shares will be automatically converted into 1,000 reconstructed shares, with a ten‑fold adjustment to the reference price to preserve the holding’s value at the point of adjustment. Fractional entitlements that arise when holdings do not divide evenly by ten will be aggregated and sold, with proceeds distributed proportionately. Conversion is automatic for shareholders with valid CSCS accounts; holders of physical certificates must contact Pace Registrars and a licensed broker to facilitate electronic conversion.
Trading will resume once NGX confirms completion of the process. Services across Sterling’s subsidiaries—including Sterling Bank, The Alternative Bank and SterlingFI Wealth Management—continue uninterrupted. Accrued dividend rights remain intact, and any future dividends will be calculated on the reconstructed share base. Shareholders are advised to verify their revised balances through their broker, CSCS or Pace Registrars and to report any discrepancies promptly.
<small>Source: The Sun Nigeria — read the original story there.</small>
