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    Tuesday, July 9, 2024

    GTCO Announces Public Offering of N400 billion with Focus on Strategic Acquisitions


    Guaranty Trust Holding Company, also known as GTCO Plc, has finalized preparations to secure N400 billion in new capital in accordance with the recapitalization policy set forth by the Central Bank of Nigeria (CBN).

    The Group Chief Executive Officer of Guaranty Trust Holding Company, Segun Agbaje, made this disclosure during the public offer presentation at the Nigerian Exchange Limited (NGX) yesterday.

    The company intends to issue 9 billion ordinary shares at a price of N44.50 per share to the investing public, subject to regulatory approval. Unlike a rights issue, this offering is open to both retail investors and customers, allowing them to participate in the company’s growth and profitability.

    “We are targeting acquisition from the recapitalisation exercise. Whatever money raised part of it could be used for acquisition.

      “The net proceeds of the proposed offering will be used for the growth and expansion of the GTCO Plc Group businesses. Such planned growth and expansion will be effected through investment in technology infrastructure to fortify existing operations, the establishment of new subsidiaries and selective acquisition of non-banking businesses; and the recapitalisation of Guaranty Trust Bank Limited (GTBank Nigeria).”

    With respect to the target investors, Agbaje remarked, “The proposed offering was structured as an institution offering targeted at eligible investors and for retail offerings within Nigeria. For the international market, institutional investors would be targeted via private placements.”

    Regarding the restructuring of GTCO as a holding company, he stated: “We believe that the Holding Company structure allowed us take advantage of new business opportunities in the emerging competitive landscape and strengthen our earnings base. We are very excited to get started on the next phase of our incredible journey to driving Africas growth by making end-to-end financial services easily accessible to every African and African Businesses by leveraging Technology and Strategic Partnerships.”

    During his address, the Chairman of NGX Group, Alhaji Umaru Kwairanga, expressed appreciation for GTCO’s decision to approach the Exchange and provide stakeholders with information regarding its plan to secure additional capital.

    He said:” We at the Exchange has already prepared for the market to assist through our electronic platform to ensure seamless participation of the general public in the recapitalisation exercise. We are very sure that GTCO as very good brand will be successful in this offer.”

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