Sterling Financial consolidates shares, halts NGX trade till Oct 7

Sterling Financial Holdings has begun its approved share capital reconstruction, consolidating every ten existing ordinary shares into one new ordinary share. Trading on the Nigerian Exchange was suspended on Wednesday, 23 September 2026 and will remain halted for up to ten working days, through Wednesday, 7 October 2026, to allow the Central Securities Clearing System and Pace Registrars to reconcile holdings. Under the 10-for-1 consolidation, issued ordinary shares will fall from 68,502,331,708 to 6,850,233,171, each retaining a nominal value of 50 kobo. Issued share capital will therefore drop from about ₦34.25 billion to ₦3.43 billion, with roughly ₦30.83 billion transferred to a Share Reconstruction Reserve; total shareholders' funds stay unchanged. The move follows a first-half performance in which profit after tax rose 20.4 percent to ₦50.3 billion on gross earnings of ₦279.6 billion and total assets reached ₦4.67 trillion. The reconstruction aims to improve capital-structure efficiency, support strategic growth and make per-share performance easier to assess against peers. Shareholders with valid CSCS accounts will see their reconstructed shares credited automatically; holders of physical certificates must contact Pace Registrars and a licensed stockbroker to convert to electronic form. Fractional entitlements will be aggregated and sold, with net proceeds distributed proportionally. Accrued dividends remain intact and future dividends will be based on the new share base. Trading will resume after NGX confirms completion; investors should check revised balances via their broker, CSCS or the registrar and report any discrepancies.

SOURCE: https://www.premiumtimesng.com/promoted/912342-sterling-financial-optimises-capital-structure.html