STERLING BANK RIGHTS ISSUE FULLY SUBSCRIBED
By Oriade Ayomide
A statement issued by Sterling Bank Plc has it that the bank’s rights issue recorded a massive 103.3 per cent subscription. The bank’s rights issue of 5,888,949,162 ordinary shares of 50 kobo each, offered at N2.12 per share, opened on June 24, 2013 with strong support from shareholders, thus leading to the shares being oversubscribed.
The bank said valid applications received totaled N12.9 billion, 3.3 per cent above the expected N12.5 billion. Meanwhile, the new shares were listed yesterday 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.
Managing Director/Chief Executive Officer of the bank, Mr. Yemi Adeola, while expressing satisfaction with the outcome said the success rate, reflects shareholders’ confidence in the sterling brand’s strategy and execution capabilities, adding that the bank is also in the process of concluding a private placement of US$120 million to further strengthen its capital position.
“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 1 and 2 capital respectively,” he said.