Sterling Financial Holdings Company PLC Achieves Major Breakthrough in Recapitalization Efforts, Fortifies Position as a Leader in Nigeria's Financial Services Industry
Lagos, Nigeria - Sterling Financial Holdings Company PLC, a leading financial services provider in Nigeria, has announced a significant milestone in its recapitalization journey, securing approval from the Central Bank of Nigeria (CBN) for an additional ₦75 billion in capital raise. This achievement marks a major breakthrough for the company, bolstering its financial position and paving the way for future growth.
The approval from the CBN is a testament to Sterling's strategic direction and operational excellence, demonstrating the regulator's confidence in the company's vision to redefine financial services in Nigeria and beyond. This milestone is a culmination of Sterling's efforts to strengthen its capital base, following a successful private placement in September 2024 and a Rights Issue in October 2024.
The recapitalization process is expected to be completed with a Public Offer in early 2025, which will provide an exciting opportunity for individuals to invest in the company. This will not only deepen Sterling's roots in the Nigerian financial services industry but also enable the company to pursue transformative opportunities, deliver sustainable value to all stakeholders, and drive impact across critical sectors of the economy.
Commenting on the achievement, Group Chief Executive, Mr. Yemi Odubiyi, said: "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."
Mr. Odubiyi emphasized that Sterling's evolution from its origins as a merchant bank to its current status as a diversified financial holdings company has been instrumental in its success. Powered by cutting-edge technology and a flexible operational model, the company has consistently demonstrated its ability to navigate market difficulties and seize growth opportunities.
Sterling's financial performance has been robust, with a 19% surge in stock price as of December 2024, contributing to a remarkable three-year growth of 287.42%. In the first half of 2024, the company recorded a 51% increase in profit before tax compared to the same period in 2023 and achieved a 20% growth in total assets.
These results demonstrate Sterling's resilience and ability to deliver superior outcomes despite the complexities of Nigeria's economic landscape, marked by high inflation and currency volatility.
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.
This latest milestone marks a transformative chapter for Sterling Financial Holdings Company PLC as it continues to redefine the future of financial services in Nigeria and beyond.
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