Sterling Bank Falls, Rights Issue at 20% Discount to Market Price
Shareholders of Sterling Bank will be paying much less when they exercise their rights to buy shares at about 20% discount to the going market price this week.
In a bid to raise N28.79 billion from shareholders, Sterling Bank is selling 7,197,604,531 ordinary shares at N4. In the equities market, Sterling Financial Holdings PLC traded at N4.98 per share at the close of trading session on the Nigerian Exchange on Friday.
Analysts noted a significant price discount of 98 kobo on each shares as the group seek to recapitalise its banking arm, Sterling Bank.
The financial services company’s 1 for 4 rights issue would allow the group to raise about N29 billion from existing shareholders – a move ginger by the regulator decision to increase banks capital base by the end of first quarter of 2026.
Data from the Nigerian Exchange (NGX) showed Sterling bank settled at N4.98, a slight decline from an opening price of N5. Its 28,790,418,124 shares outstanding on NGX were valued at N14. 376 billion due to marginal negative price movement reported last week.
The bank’s rights issue gives its shareholders opportunity to increase their positions, boosting capital support for the financial services company.
Sterling Bank share price movements has been volatile, the banking stock is trading at 39.2683% discount to its 52-week high. The bank share price had printed at N8.2 per in the equities market before it retreated.
According to data from the Nigeria Exchange, Sterling Bank is closer to its 52-week low (N3.32) than to its 52-week high (N8.2). The rights issue was priced below 50% to its peak price in the past 12 months. #Sterling Bank Falls, Rights Issue at 20% Discount to Market Price
