Sterling Bank becomes 31st most capitalised stock at the NSE

Sterling Bank Plc has become the 31st most capitalised stock at the Nigerian Stock Exchange, NSE, with a market capitalisation of N52.9 billion.

A statement from the bank attributed the feat to the 103.3 percent subscription that was recorded in its just concluded rights issue of 5.89 billion ordinary shares of 50 kobo each.

The rights issue, which was sold at a unit price of N2.12 per share was said to have been oversubscribed following support from the bank’s existing shareholders.

The total valid applications received on the offer which opened on June 24, 2013 was put at N12.9 billion which was 3.3 percent higher than the projected N12.5 billion.

It will be recalled that Sterling Bank’s new shares were listed on Monday on the floor of the Nigerian Stock Exchange, NSE, consequent upon which it became the 31st most capitalised stock from the initial 38th position.

In his comments on the rights issue, Sterling Bank’s Managing Director, Mr. Yemi Adeola, expressed his delight at its outcome, which success rate, he said, was due to the confidence repose in the bank by its shareholders.

Adeola also revealed that the bank is in the process of concluding a private placement of US$120 million to further strengthen its capital base.

According to him, “These are part of our $400 million capital raising plan comprising $200 million each in tiers one and two capital respectively”.

He said, the $200 million tier two capital will be raised through a multi-currency debt issue expected to come through this year.

The MD, while reiterating the bank’s goal at increasing its capital position to an excess of N100 billion in 2014 to support growth plans, also revealed the bank’s plan to invest in information technology, distribution outlets and alternative delivery channels.