Sterling Holdings Expects Share Reconstruction to Support More Efficient Price Formation, Others

By Aduragbemi Omiyale

The share capital reconstruction of Sterling Financial Holdings Company Plc, consolidating every 10 existing ordinary shares into one new ordinary share, has commenced.

Last week, trading in the shares of the company on the Nigerian Exchange (NGX) Limited was suspended to allow the Central Securities Clearing System (CSCS) Plc and Pace Registrars Limited to reconcile holdings and update the shareholder register.

This temporary suspension, which commenced on Wednesday, September 23, 2026, is expected to end on Wednesday, October 7, 2026.

Under the approved structure, issued ordinary shares will be reduced from 68,502,331,708 to 6,850,233,171, each retaining a nominal value of 50 kobo. This reclassification leaves total shareholders’ funds unchanged, and it does not constitute a fresh capital raise or a cash distribution.

For individual shareholders, every 10,000 existing shares will become 1,000 reconstructed shares, with a corresponding tenfold adjustment to the reference price. This preserves the calculated holding value at the point of adjustment. Actual trading prices may rise or fall when trading resumes.

Conversion of eligible holdings is automatic and requires no application or payment. Shareholders with a valid CSCS account and stockbroker details will have their reconstructed shares credited electronically without further action. Holders of physical certificates are required to contact Pace Registrars and a licensed stockbroker for assistance in converting their holdings into electronic form.

Sterling Holdings said it expects the revised share structure to support more efficient price formation and strengthen its appeal to institutional and retail investors.

Alongside consistently adjusted financial disclosures, the reconstruction is intended to make per-share performance easier to assess across reporting periods and support sharper comparisons with relevant sector peers.

Business Post reports that shareholders approved the reconstruction at the Annual General Meeting (AGM) on June 9, 2026, with the requisite regulatory no-objections obtained, and an order of the Federal High Court, dated September 22, 2026, confirmed the share reduction exercise.