Sterling Financial Holdings Company Plc has commenced its approved 1-for-10 share reconstruction, prompting the suspension of trading in its shares on the Nigerian Exchange Limited (NGX).
This is not the first time trading in the company’s shares has been suspended. In March 2023, trading was also suspended, but for a different reason, to facilitate Sterling Bank’s restructuring into a financial holding company under a scheme of arrangement (holdco). The latest suspension, which took effect on September 23, 2026, is instead to facilitate the reconciliation of shareholder records ahead of the listing of reconstructed shares.
Trading in the company’s shares would allow its registrars and the Central Securities Clearing System Plc (CSCS) to reconcile shareholder records ahead of the listing of the reconstructed shares.
According to NGX, the suspension is also required to determine the shareholders entitled to receive the reconstructed shares.
Under the approved reconstruction, every 10 existing ordinary shares will be consolidated into one new ordinary share, reducing Sterling Financial’s issued share capital from about 68.5 billion shares to 6.85 billion shares.
For instance, a shareholder holding 10,000 shares before the reconstruction would hold 1,000 shares after the exercise, with the reference price adjusted accordingly.
The reconstruction was approved by shareholders at the company’s Annual General Meeting on June 9, 2026, while a Federal High Court order dated September 22, 2026, confirmed the share-reduction exercise.
The company said the exercise is aimed at optimising its capital structure and supporting its growth strategy, while improving the attractiveness and comparability of its shares to investors. Total shareholders’ funds will remain unchanged by the reconstruction.
The move comes against the backdrop of stronger financial performance in the first half of 2026 which ended on the 30, June 2026.
Sterling Financial reported profit after tax of ₦50.3 billion for the six months ended June 30, representing a 20.4 per cent increase from ₦41.78 billion recorded in the corresponding period of 2025. Profit before tax also rose 21.9 per cent to ₦55.53 billion, while gross earnings increased 31.5 per cent to ₦279.6 billion.
The group’s total assets rose 19.3 per cent to ₦4.67 trillion, while customer deposits increased 21.1 per cent to ₦3.62 trillion. Shareholders’ funds also grew 27.8 per cent to ₦547.7 billion.
The share reconstruction follows the expansion of the company’s equity base and is being implemented as Sterling Financial seeks to optimise its share structure while continuing its growth strategy. NGX said trading will remain suspended until the reconciliation process is completed and the reconstructed shares are listed.