Sterling HoldCo plans $400m capital raise at 3rd AGM

By Damilare Adeleye

Sterling Financial Holdings Company Plc has announced plans to seek shareholders’ approval for a major share capital restructuring and a fresh capital raise of up to $400 million at its 3rd Annual General Meeting, scheduled for June 9, 2026.

A notice of the AGM signed by the Company Secretary, Sunny Kanabe, disclosed that the meeting will be held virtually via the company’s website platform.

A key item on the agenda is a proposed share consolidation that would reduce the company’s issued shares from 68.5 billion ordinary shares to 6.85 billion shares on the basis of a 10-for-1 consolidation ratio.

The company also proposed the cancellation of over 61.6 billion issued shares as part of a capital reduction exercise, subject to approval by the Federal High Court.

Following the restructuring, Sterling HoldCo’s share capital is expected to stand at N3.43 billion, divided into 6.85 billion ordinary shares of 50 kobo each.

“Subject to applicable laws and obtaining relevant regulatory approvals, the 68,502,331,708 ordinary shares of N0.50k each in the share capital of the Company be consolidated into 6,850,233,171 ordinary shares at a ratio of 10 for 1,” the notice partly reads.

Sterling HoldCo further disclosed plans to raise up to $400 million, or its equivalent in naira or other currencies, through multiple instruments in the local and international capital markets.

The company stated that the fundraising could be executed through the issuance of debt instruments, bonds, preference shares, ordinary shares, global depositary receipts, or a combination thereof, via public offers, private placements, or rights issues, depending on market conditions and regulatory approvals.

Part of the resolutions would also empower the board to amend the company’s Memorandum and Articles of Association to reflect any changes arising from the restructuring and capital-raising program.

In addition, shareholders will consider the audited financial statements for the year ended December 31, 2025, re-elect directors Aisha Bashir and Abubakar Suleiman, and approve directors’ remuneration.

The company is also seeking approval to fix the aggregate annual fees of non-executive directors at N191.13 million for the 2026 financial year until reviewed at a subsequent AGM.