GTCO to raise N400.5bn capital via public offer
Guaranty Trust Holding Company Plc (GTCO) says it plans to raise N400.5 billion through a public offer on the Nigerian Exchange Ltd. (NGX).
Mr. Segun Agbaje, Group Managing Director of GTCO, disclosed this on Monday during the “Facts Behind the Offer Presentation” in Lagos.
The capital raise is subject to Securities and Exchange Commission (SEC) approval and is aimed at meeting the Central Bank of Nigeria’s (CBN) recapitalization directive for banks.
Agbaje outlined the plan to issue nine billion ordinary shares of 50 kobo each at an offer price of N44.50 per share, stating that the initiative was set in motion before the CBN’s announcement earlier in the year.
He attributed the need for additional capital to offset the effects of the Naira devaluation, which had impacted banks’ asset strength and operational capacities.
Agbaje expressed confidence in GTCO’s ability to achieve significant milestones, including becoming the first Nigerian financial institution to reach one billion dollars in profit.
He emphasised the importance of boosting market capitalization to enhance Nigeria’s economic standing.
“We want a market capitalization that Nigeria will be proud of.
“There is no Nigerian company that has ever made one billion dollars in profit, and we are going to be the first to achieve it,” he added.
According to him, the balance sheets of banks have shrunk and their ability to do business has reduced; thus, they need equity to operate.
In line with the Federal Government’s goal of achieving a one trillion dollar economy by 2026, Agbaje said it was necessary for banks to increase their equity base to support expanded business operations.
Looking ahead, he outlined GTCO’s growth strategy, which includes deepening its footprint in Nigeria and expanding into critical sectors such as the pension industry.
He also said that the group planned to invest in Senegal and expand operations in Cote d’Ivoire, Ghana, and Kenya.
He stated that the group would also embark on acquisitions with the new capital and change its core banking software across its region.
Addressing stakeholders, Alhaji Umaru Kwairanga, Group Chairman of NGX Group Plc, commended GTCO for its resilience and leadership in the financial sector.
He affirmed NGX’s commitment to supporting GTCO and other financial institutions in their recapitalization endeavours.
Kwairanga highlighted NGX’s initiatives aimed at enhancing market efficiency and accessibility, noting that GTCO’s proactive engagement through presentations like these fosters transparency and investor confidence.
Ahonsi Unuigbe, the Chairman of NGX Exchange Ltd., lauded GTCO’s recent financial performance, citing gross earnings of N1.19 trillion and robust profitability metrics.
He urged GTCO to maintain sustainability amidst evolving economic landscapes by upholding high standards of corporate governance and regulatory compliance.
Unuigbe advised GTCO to continue delivering value to shareholders through strategic initiatives that promote long-term growth and stability in the Nigerian financial market.
