Sterling Financial Holdings Company Plc has started a major restructuring of its shares, with every 10 existing shares being converted into one new share.
The exercise has temporarily stopped trading in the company’s shares on the Nigerian Exchange (NGX) as Sterling Financial and its registrars work to update shareholders’ records.
The suspension began on September 23 and is expected to run until October 7, subject to the completion of the process and confirmation by NGX.
For shareholders, the change is straightforward: an investor holding 10,000 Sterling Financial shares will have 1,000 shares after the reconstruction. The reduction in the number of shares does not, by itself, mean the investor has lost 90 per cent of their investment.
Sterling Financial currently has about 68.5 billion issued ordinary shares. After the exercise, that figure will drop to approximately 6.85 billion.
The company said the reconstruction is intended to make its capital structure more efficient and improve the way its shares are traded and valued.
Importantly, this is not a new share sale or fundraising exercise. Sterling Financial said the reduction will be transferred to a Share Reconstruction Reserve, while the company’s total shareholders’ funds remain unchanged.
The move comes as the financial group continues to expand its businesses. Sterling Financial reported a 20.4 per cent increase in profit after tax to ₦50.3 billion for the first half of 2026, while gross earnings rose to ₦279.6 billion.
Its total assets also reached ₦4.67 trillion during the period, with shareholders’ funds increasing to ₦547.7 billion.
The share reconstruction was approved by shareholders at the company’s Annual General Meeting in June. A Federal High Court order dated September 22 subsequently confirmed the reduction.
Sterling Financial said its subsidiaries, including Sterling Bank, The Alternative Bank and SterlingFI Wealth Management, will continue their normal operations during the exercise.
Once the reconciliation of shareholders’ holdings is completed and the reconstructed shares are listed, trading in Sterling Financial shares is expected to resume.
FocusNews Explainer — Tomorrow: Sterling just turned 68.5 billion shares into 6.85 billion. What does a 10-for-1 share reconstruction actually mean for investors?
