Sterling Financial Holdings Company Plc has completed its 1-for-10 share reconstruction and re-entered the Nigerian Exchange (NGX) at a reference price of N77.00.
The Nigerian Exchange on Wednesday, October 8, 2026, delisted the company’s 68.50 billion existing ordinary shares and simultaneously listed 6.85 billion reconstructed ordinary shares. Trading is expected to begin once the NGX opens the post-reconstruction trading window.
According to a research note by Cowry Asset Management Limited released today, the exercise followed shareholder approval at the Annual General Meeting, a High Court Order and the Securities and Exchange Commission’s no-objection. The completion removes a long-standing corporate-action overhang from the stock, which last traded at N7.70 on September 22, 2026, before suspension.
“The headline jump from N7.70 to N77.00 should not be mistaken for a market re-rating,” Cowry Research cautioned.
The firm said, “the share count has fallen by 90 per cent while the quoted price has risen tenfold, so market capitalisation is unchanged at about N527.5 billion and every shareholder retains exactly the same percentage ownership.”
Under the 1-for-10 ratio, every ten existing shares have been consolidated into one ordinary share. The implication is purely denominational. An investor who held 100,000 shares at N7.70 now holds 10,000 shares at N77.00, and the position value remains N770,000.
Cowry noted that the reconstruction changes the denomination of Sterling’s equity value, not the value itself, explaining that before reconstruction, 68.50 billion shares at N7.70 implied a market cap of N527.5 billion. After reconstruction, 6.85 billion shares at N77.00 produce the same figure. Share capital also falls by 90 per cent from N34.25 billion to N3.43 billion.
“Investors who compare unadjusted history with post-reconstruction numbers will overstate growth tenfold, so restating the series is the first analytical task,” Cowry stated.
It added that “the near-term focus now shifts to price discovery. N77.00 is a reference point rather than a target, and the stock is free to trade on either side of it once the market opens.
“With the nominal number of shares available to trade now substantially lower, early sessions may see exaggerated price movements depending on free float and institutional positioning.”
Cowry described the completion as fundamentally neutral but strategically positive for Sterling’s capital-market profile.
“We recommend that investors avoid reading the N77.00 listing price in isolation, and wait for adequate post-resumption price discovery and the company’s latest financial performance before making aggressive valuation calls,” the firm said.
It noted further that a stronger investment case would require evidence of sustainable earnings growth, attractive returns on equity and compelling valuation versus peers.
