GTCO Targets Operation Expansion With Proposed N400.5bn Public Offer

Guaranty Trust Holding Company (GTCO) Plc has planned to raise N400.5 billion to be used for the growth and expansion of the Group businesses and the banking businesses, including the recapitalisation of its banking subsidiary.

The Holding Company planned to issue a public offer of nine billion ordinary shares of 50 kobo at an offer price of N44.50 per ordinary shares on the Nigerian Exchange Limited (NGX), translating to a gross value of N400.5 billion.

Speaking at the ‘Facts Behind the Offer Presentation’ held yesterday on the floor of Nigerian Exchange, the group managing director, GTCO, Segun Agbaje stated that the Group was planning to raise capital before the Central Bank of Nigeria (CBN) banking recapitalization exercise.

He noted that the naira devaluation has weakened the assets of banks operating in the country. He vowed that the Group would become the first financial institution to reach a $1 billion in profit.

On the rationale behind the offer, he said, “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.

“We are going to grow the business in Nigeria and outside Nigeria and the non-banking businesses. It is impossible to do that without technology. When we do food and drink, it is about our customer experience. When we do fashion, it is about our customer experience and when we do banking, it is about our customer experience, and you cannot do that without the right technology platform,” he explained.

He further said “so irrespective of whether the Central Bank asked for capital raising or not, we would have raised capital.”

On growth strategy going forward, Agbaje highlighted that in Nigeria, GTCO plans to deepen the business, stressing that exposure to critical sectors would be bigger and stronger.

“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 expressed further that the GTCO would go into an acquisition with a new capital, adding that the financial institution is going to change its core-banking software across its region.

The group chairman, NGX Group Plc, Alhaji Umaru said that over the years, GTCO through its GTBank era to the HoldCo era has consistently demonstrated remarkable 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 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,” he added.