Sterling 3 Directors Buy More Shares As Company’s Market Value Increase by Over N5bn One Week

• Directors at Sterling Financial Holdings have decided to purchase more shares in the company worth N15 million
• This is coming just a few days after Abubakar Suleiman, the company's CEO, spent over 800 million on the company's shares
• Sterling has one of the best-performing bank stocks, and in the last 7 days, the company's market value has increased by over N5 billion.

Sterling Financial Holdings, the parent company of Sterling Bank, has announced that three of its directors have decided to increase their shareholdings.

This was disclosed in a statement signed by Company's Secretary, Temitayo Adegoke, and submitted to Nigerian Exchange.

According to the statement, the directors are Abubakar Suleiman, Raheem Owodeyi, and Tunde Adeola.

They purchased a combined 5,156,398(5.1 million) units of shares in the company, worth N15 million.

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The acquisition of 5,156,398 shares by the 3 directors represents 0.02% of the company's total outstanding shares.

Breakdown of the Sterling shares acquisition by directors

Sterling revealed that Abubakar Suleiman a non-executive director of Sterling Financial Holdings, acquired 2,663,014 units of shares at N3.56 per share.

This acquisition has now increased his direct shareholdings in the company from 335,768,608 units as at 15th August 2023 to 345,248,938 units.

While Raheem Owodeyi an Executive Director, of Sterling Bank Ltd (a Subsidiary), purchased 1,246,692 units of shares.

The 1,246,692 units were bought at N3.56 per share, valued at N4.44 million.

This acquisition increased Owodeyi's number of direct shares from to 15,946,692 units.

Also, Tunde Adeola, Executive Director, Sterling Bank Ltd (a Subsidiary), also purchased 1,246,692 units of shares.

The 1,246,692 units were bought at N3.56 per share, valued at N4.44 million, increasing its shareholdings in the company to 15,946,692 units.

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Sterling Bank's market value increase

Meanwhile, checks by Legit.ng show that Sterling is one of the best performing on the Nigerian exchange.

In the last seven days(Aug-10-2023 to Aug-17-2023), the market value of the company's share has increased by N5.78 billion.

On August 10, 2023, the company had 28,790,418,124.00 outstanding shares valued at N3.44 per share, equating to a total market value of N98.94 billion.

By Thursday, the company's shares had experienced a 5.81% increase in value, trading at N3.64 per share, leading to a market value of N104.72 billion.

Expert insight

Speaking on the acquisition of shares by banks director, Prof Uche Uwaleke, Professor of Capital Market at the Nasarawa State University and President Capital Market Academics of Nigeria, explained that banking stocks are one of the most attractive.

He noted:

"According to the latest GDP data, the financial services sector, led by banks, is one of the best-performing in the economy. It is so the top performing stocks on the Nigerian exchange.

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"Check out the foreign portfolio investments into the country it is majorly through the banks. There have also been discussions about bank recapitalization and public offers.

"In summary, the outlook for the banking sector remains robust within the present economic climate. This is why top bank directors are buying more shares."

Dangote, Elumelu’s wealth soars N3.2bn in one day as UBA shares skyrocket to highest level in 2023

In a similar report, Legit.ng revealed that the chairman of United Bank for Africa, Tony Elumelu, and Africa's Richest man Aliko Dangote have made a combined N3.2 billion in one day, following the increase in the UBAs shares.

Data obtained from the Nigerian exchange shows that the stock price of UBA increased to N14.9 per share on Friday, July 21, 2023.

This represents a 9.96 percent improvement compared to the 13.55 it traded the previous day.

Source: Legit.ng