Sterling Financial Holdings Company Plc has received approval from the Central Bank of Nigeria (CBN) to implement a public offering in 2025.

The approval is an important development for the company in its efforts to meet the apex bank’s new capital threshold.

The CBN approval was announced in a statement on Friday, December 27.

How Sterling bank plans to meet capital requirements

Sterling Bank first announced a capital injection process initiated through a private placement in September 2024.

Following the private placement, Sterling HoldCo also launched a Rights Issue in October, granting existing shareholders an exclusive opportunity to increase their stakes.

The Rights Issue received strong participation, reflecting shareholder confidence in the company’s strategic direction.

Regulatory approval for the rights issue is currently pending.

Next move for Sterling Bank

Sterling HoldCo plans to launch a public offering in early 2025, which will further bolster its capital base to meet CBN’s requirements.

CEO speaks on plans

Group Chief Executive Yemi Odubiyi described the CBN’s approval as a testament to the firm’s operational excellence and strategic vision, Punch reports.

Odubiyi said: “This milestone reflects the confidence of regulators and stakeholders in our vision to redefine financial services in Nigeria and beyond.

“This recapitalization strengthens our ability to unlock new opportunities, create value, and drive economic growth.

“With a fortified capital structure, Sterling Bank is well-positioned to execute its ambitious growth plans and set new benchmarks for excellence in Nigeria’s financial services industry.”

He also spoke about Sterling’s evolution from a merchant bank to a diversified financial holdings company.

Odubiyi noted that the company has, over the years, leveraged technology and an agile operational model to navigate market challenges and seize growth opportunities.

“This latest milestone marks a transformative chapter for Sterling Financial Holdings Company Plc as it continues to redefine the future of financial services in Nigeria and beyond.”

Sterling Bank financial performance

Sterling’s recapitalization efforts come amid a year of strong financial performance.

The company reported a 51% increase in profit before tax in the first half of 2024 compared to the same period in 2023, alongside a 20% growth in total assets.

As of December 2024, Sterling’s stock price had surged by 19%, contributing to a three-year cumulative growth of 287.42%.