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Sterling Bank’s rights issue records 103.3% subscription

By on January 23, 2014

Sterling Bank Plc. has recorded 103.3 percent subscription in its just concluded rights issue of 5.89 billion ordinary shares of 50 kobo each. According to a statement from  the bank, the rights issue, which was sold at a unit price of N2.12 per share was oversubscribed following support from the existing shareholders.

The offer opened on June 24, with total valid applications received totaled at N12.9 billion, representing 3.3 percent above the expected N12.5 billion.

The new shares were listed on Monday on the floor of the Nigerian Stock Exchange, NSE following which Sterling Bank became the 31st most capitalised stock (from 38th position) with a market capitalisation of N52.9 billion. Speaking on the rights issue, Yemi Adeola, Manging Director, Sterling Bank, said, “ We are pleased with the outcome of the rights issue and the success rate reflects shareholders’ confidence in our strategy and execution capabilities.

We are also in the process of concluding a private placement of US$120 million to further strengthen our capital position. “These are part of our US$400 million capital raising plan comprising US$200 million each in tiers one and two capital respectively.

The US$200 million tier two capital will be raised through a multi-currency debt issue expected to come through this year. “Our goal this year is to increase our capital position to an excess of N100 billion, with the funds deployed to support our growth plans.

We will invest in information technology, distribution outlets and alternative delivery channels; while leveraging the enhanced capital position to support lending.

We are very optimistic about our capital plans and would continue to deliver superior returns to shareholders.”

 

 

[Vanguard]