According to a notice released by Sterling Financial Holdings Company Plc signed by Temitayo Adegoke, the Secretary of the Company, the board plans to ask Shareholders at an upcoming annual general meeting (AGM) for permission to raise a capital of N200 billion using a variety of share issuance strategies in the Nigeria capital market.
This notice which was sent to the Nigeria Stock Exchange(NGX) contained that the capital raise will be subject to obtaining regulatory approvals and determining terms and conditions by the Board of Directors.
The Central Bank of Nigeria recently implemented minimum capital requirements of; N500 billion for international banks, N200 billion for national licensed banks, and N50 billion for regional commercial banks, which highlights the need to strengthen the financial system’s resilience and enable lenders to engage in more significant roles that will contribute to economic growth, this is what influenced the company’s decision.
Sterling company stated that the capital raise may be channeled towards private placements, public offerings, or other transaction methods with the maturity period and dates for the issuance, which may take place in different proportions, series, or tranches.
“If there is a rights issue, any shares that are not taken up by current shareholders within the specified period may be offered for sale to other interested current shareholders. If, after such an offer, any portion of the shares remain unsold, the directors are hereby authorized to offer such shares to interested investors on similar terms to the Right Issue or offer for subscription,” Sterling company stated.
To further the aforementioned, The Directors are authorized to increase the Company’s share capital by allocating up to 40 billion shares at the rate of 50 Kobo per share, ranking pari passu with existing ordinary shares, within two years, per sections 127(1) and 149(1)(a) of the Companies and Allied Matters Act 2020 as amended by the Business Facilitation Act 2022.
