Guaranty Trust Holding Corporation has raised $105 million in its first international share sale, ahead of its listing on the London Stock Exchange.scheduled for next week. The amount raised is in excess of the $100 million it initially planned to raise as part of its recapitalisation plan.
The shares were sold at the equivalent of 70 naira ($0.05) per share through a book building process, representing a 15% discount to the lender’s share price of 82.75 naira as of 2.30 p.m. in Lagos on Thursday.
The capital raised is among the plans of the financial institution’s race to meet up with the N500 billion capital base as required by Central Bank of Nigeria before the end of the first quarter of next year.
Citigroup Global Markets Ltd. acted as sole global coordinator and bookrunner for the offering. Commenting, Managing Director and Vice Chair for Investment Banking, Middle East and Africa at Citigroup Incorporated, Miguel Azevedo, said the sale “effectively marks the reopening of international equity markets for non-South African sub-Saharan African issuers. Dual listing with London offers international investors better liquidity in the stock allowing for renewed interest.”
On his part, Chief Executive of GTCO, Segun Agbaje noted that the London listing London represents a “pivotal moment in GTCO’s growth, reinforcing our position as a forward-thinking African financial services institution.”
With the listing scheduled for next week, GTCO which is listed on the Nigerian Stock Exchange, will be the bank from the country to list on the LSE, bringing to three the number of Nigerian firms trading in London, following Seplat Energy Plc and Airtel Africa Plc.
GTBank in 2007 raised $750 million by selling global depository receipts, which the company will now cancel and de-list, according to the statement. GDR holders can exchange their securities into shares for trading either in London or Lagos, the company said.
The bank had previously sought shareholder approval to raise $750 million through an offering of ordinary or preference shares, convertible and non-convertible notes, bonds or any other instruments. In January, it announced the completion of a 209 billion-naira ($136.6 million) capital raise, which it said was the first phase of a funding exercise.
After recapitalizing GTBank with the proceeds from the offer, GTCO plans to deploy the extra funds for growth and expansion through acquisitions in the pension-fund administration and asset-management industries over the next two years, it said last year.
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