Sterling Bank MD, Suleiman, directors engage in share dealing of N42.36m

Last week, Sterling Bank Managing Director Abubakar Suleiman and three other executive directors of the financial institution, Raheem Owodeyi, Tunde Adeola, and Yemi Odubiyi, participated in stock trading.

The four executives exchanged about N42.36 million in shares during Sterling Bank’s -24 percent depreciation in the Nigerian stock market, as investors remained away from the business after shareholders’ waning trust in the lender’s expansion.

Shareholders’ massive sell-off has dragged Sterling Bank’s share price down to N1.55kobo per share as of June 17, 2022, as stakeholders are willing to sell their holdings at a lower price to exit their investment in the lender, well below the N2.04 investors were willing to buy at the beginning of January 2021.

Sterling Bank’s market capitalization has been reduced from N58.73 billion to N44.62 billion as a result of the adverse attitude, demonstrating the capital market’s diminishing demand for Sterling Bank shares.

In the midst of this declining trend, Suleiman, Owodeyi, Adeola, and Odubiyi, the top five direct majority owners, joined in the staff equity program to buy more Sterling Bank shares. Share acquisition by senior executives is also considered as a means for a corporation to build shareholder confidence and attract potential investors to acquire the firm’s stock.

Ripples Nigeria learned through a share transaction document received from the Nigerian Exchange Limited (NGX) that Sterling Bank MD spent N19.92 million to purchase 13.02 million shares on June 16, bringing his total investment in the business to N93.53 million.

Owodeyi spent N5.10 million to buy 3.33 million shares. He has been buying shares in Sterling Bank since last year, and his current investment worth is roughly N29.55 million.

Adeola, who has been actively expanding his interest in the financial institution, purchased 1.72 million shares valued at N2.63 million, bringing his total investment to N44.89 million.

Odubiyi increased his interest in Sterling Bank to N55.92 million by purchasing approximately 9.60 million shares for N14.70 million.

As the capital market resumes trading this week on Monday, it will be interesting to see how investors react to their share acquisition, given that Sterling Bank’s share price fell further on Friday, June 17, to N1.55kobo, down from N1.56kobo the previous day, when the four executives engaged in the share dealings.