Abubakar Suleiman, managing director of Sterling Bank and three other executive directors at the financial institution, Raheem Owodeyi, Tunde Adeola and Yemi Odubiyi engaged in share dealings last week.
The four top executives traded about N42.36 million worth of shares, on the heels of the bank‘s shares depreciation in the Nigerian stock market.
Sterling Bank suffered -24% depreciation in the stock market, as investors stayed away from the firm following shareholders declining confidence in the lender’s growth.
Shareholders massive sell off has dragged Sterling Bank’s share down to N1.55kobo per share as at June 17, 2022, as stakeholders are willing to sell their holdings at a cheaper price to exit their investment from the lender, way below the N2.04 investors were willing to buy at the start of January 2021.
The bearish sentiment has wiped off N14.10 billion from the market capitalisation of Sterling Bank, reducing its valuation from N58.73 billion, down to N44.62 billion, reflecting the capital market’s dwindling demand for Sterling Bank shares.
In possible move to curtail the downward trajectory, Suleiman, Owodeyi, Adeola, and Odubiyi, who are part of the top five direct majority shareholders, participated in the staff equity scheme, to acquire more shares of Sterling Bank.
Share acquisition of top executives are also seen as a way of a company trying to boost the confidence of shareholders to hold their shares, and encourage prospective investors to purchase the firm’s stock.
In a share dealing document obtained from the Nigerian Exchange Limited (NGX), Ripples Nigeria gathered that Sterling Bank MD paid N19.92 million to acquire 13.02 million shares on June 16, taking his total investment in the firm to N93.53 million.
Owodeyi parted with N5.10 million to purchase 3.33 million shares. He has been acquiring shares since last year, and his current investment value in Sterling Bank is around N29.55 million.
Adeola, who has also been actively increasing his stake at the financial institution bought 1.72 million shares worth N2.63 million, taking his total investment to N44.89 million.
Odubiyi purchased over 9.60 million shares worth N14.70 million, increasing his investment in Sterling Bank to N55.92 million.