Sterling begins share allotment after $78.6m offer boost

Sterling Financial Holdings Company, led by banking mogul Yemi Odubiyi, has started allotting shares from its 2025 public offer after receiving the required approvals from the Central Bank of Nigeria and the Securities and Exchange Commission.

The offer comprised 12.58 billion ordinary shares priced at N7.00 ($0.0047) each. When it opened on September 15, 2025, it attracted solid interest from investors.

In total, the company received 18,280 applications for 16.84 billion shares worth about N117.88 billion ($78.6 million). After screening the entries, 18,276 applications were confirmed valid for 13.81 billion shares, leaving the offer oversubscribed at 109.79 percent.

All valid applications will be allotted in full. A small number were either rejected or adjusted due to issues such as duplicate payments or failure to meet the minimum subscription threshold of 1,000 shares or its multiples.

The public offer forms part of Sterling’s broader capital-raising strategy aimed at strengthening its lending capacity, supporting product development and expanding financing to businesses and households.

The group also plans to inject N10 billion ($6.7 million) into SterlingFI Wealth Management Limited to comply with new minimum capital requirements for capital market operators introduced by the SEC in January 2026. The fresh capital is expected to support the subsidiary’s full operations and diversify revenue streams.

Refunds for excess or rejected applications, including interest where applicable, will be processed electronically into investors’ bank accounts through the appropriate payment channels.

Allotted shares will be credited directly into investors’ Central Securities Clearing System accounts, while those without CSCS accounts will have their shares temporarily held by the registrar pending documentation.

Offer data shows participation from a number of first-time shareholders in a financial services company, suggesting a widening investor base.

In its interim results for the 2025 financial year, Sterling reported a 99 percent rise in profit before tax, following triple-digit growth in the prior year. Gross earnings reached N476.5 billion ($317.7 million), total assets stood at N3.92 trillion ($2.61 billion), customer deposits climbed to N2.98 trillion ($1.99 billion), and shareholders’ funds rose to N24.0 billion ($16.0 million). The cost-to-income ratio improved to 63 percent from 72 percent a year earlier.

Sterling operates through subsidiaries, including Sterling Bank Limited, The Alternative Bank Limited, and Sterling FI Wealth Management. The group has now completed the recapitalisation of its banking subsidiaries, having received regulatory approvals in January 2026 that confirm they meet the updated capital requirements.

Sterling said the fresh funds will be channelled across its subsidiaries to reinforce operations, grow its loan book and support wider economic activity.