GTCO eyes business expansion with proposed N400.5bn public offer

Cynthia Ezekwe

Guaranty Trust Holding Company (GTCO) Plc, one of Nigeria’s top financial services institutions, has unveiled plans to raise N400.5 billion to fund expansion initiatives across its business groups, including a recapitalisation of its banking subsidiary.

To achieve this objective, the holding company plans to offer nine billion ordinary shares of 50 kobo each at an offer price of N44.50 per share on the Nigerian Exchange Limited (NGX), resulting in a gross value of N400.5 billion.

Speaking during the ‘Facts Behind the Offer Presentation’ on the floor of the Nigerian Exchange, Segun Agbaje, the Group Managing Director of GTCO, disclosed that the group had been planning to raise capital even before the CBN’s banking recapitalisation exercise.He noted that the naira devaluation has weakened the assets of banks operating in the country, reiterating the group’s commitment  to attain $1 billion in profit profile. 

Agbaje further elaborated on the need for the share offer, stating, “Banks need equity. We have just gone through about a 200 per cent devaluation of the naira. The balance sheets of banks have shrunk and as the ability to do business have reduced.With the federal government proposing a $1 trillion economy; we are not going to achieve a $1 trillion economy at this size of banks if you do not raise capital.”

Agbaje reiterated GTCO’s plans to strengthen its operations in Nigeria, expanding its presence and increasing its investment in key sectors of the economy. He added that GTCO would also invest in Senegal and expand its presence in Cote d’Ivoire, Ghana, and Kenya, growing its footprint in the region.

With the new capital, GTCO would pursue acquisitions and upgrade its core-banking software across its regional operations, strengthening its capabilities and offering a more comprehensive range of services, he stated.

On his part, Umaru Kwairanga,the group chairman, NGX Group Plc, lauded GTCO for their  remarkable resilience, innovation, and leadership in the financial sector, reiterating NGX commitment to  supporting GTCO and other financial institutions in their recapitalisation efforts.

“Our recent initiatives, such as the launch of the NGX e-platform, underscore our dedication to enhancing market efficiency and accessibility. Today’s presentation is a clear indication of GTCO’s proactive approach to engaging with the market and ensuring transparency in their capital raising activities,” Kwairanga added.