• Fri. Jul 12th, 2024

GTCO’s N400.5 Billion Public Offer Targets Capital Enhancement, International Expansion


Guaranty Trust Holding Company Plc (GTCO) has announced a proposed N400.5 billion capital raise through a public offer aimed at bolstering its capital base and expanding its international presence.

During the “Facts Behind the Offer Presentation,” GTCO Group Managing Director Mr. Segun Agbaje outlined plans to issue nine billion ordinary shares of 50 kobo each at an offer price of N44.50 per share on the Nigerian Exchange Limited (NGX). This public offer is expected to raise N400.5 billion from investors.

Agbaje emphasized the group’s growth strategy, highlighting plans to deepen business engagements and increase exposure to critical sectors. “Outside Nigeria, we are planning to invest in Senegal, because we think business is good there. We are going to grow in Cote d’Ivoire, Ghana, and Kenya,” he said.

He also stated the ambitious goal for GTCO to become the first Nigerian financial institution to achieve $1 billion in profit. “We want a market capitalization that Nigeria will be proud of. There is no Nigerian company that has ever made $1 billion in profit, and we are going to be the first to achieve it,” Agbaje declared.

Addressing the capital market community, Agbaje noted that banks need equity to thrive, especially following the recent 200% devaluation of the Naira, which has impacted banks’ balance sheets and business capacities. He stressed that achieving a $1 trillion economy, as targeted by the Federal Government, would require banks to raise capital.

Agbaje clarified that the capital raise was not solely at the Central Bank’s request. “We had already decided to raise capital to pivot this organization for transformational growth,” he said. The capital will be used to grow the business in Nigeria and internationally, improve non-banking businesses, and enhance technology for better customer experiences.

He also mentioned potential acquisitions with the new capital and plans to upgrade GTCO’s core banking software across regions.

NGX Group Plc Chairman, Alhaji Umaru Kwairanga, praised GTCO’s resilience, innovation, and leadership in the financial sector. He assured that the NGX Group is committed to supporting GTCO and other financial institutions in their recapitalization efforts, highlighting initiatives like the NGX e-platform to enhance market efficiency and accessibility.

Kwairanga expressed confidence that GTCO’s capital raise would strengthen its base, boost investor confidence, and contribute to the stability of Nigeria’s financial system.

Hyacinth Beluchukwu Nwafor

Hyacinth Beluchukwu Nwafor is a seasoned journalist and the CEO/Founder Belch Digital Communications, publishers of Hybrid News Nigeria.

Leave a Reply