Recapitalisation: GTCO Raises N209bn Through Equity Capital Programme

Guaranty Trust Holding Company (GTCO) said it has raised N209.41 billion at the first tranche of its equity capital raise programme in tune with the ongoing recapitalisation exercise in the banking sector.

This  followed the completion of the capital verification exercise conducted by the Central Bank of Nigeria (CBN) and the approval of the Basis of Allotment of the Offer by the Securities and Exchange Commission (SEC).

The offer, which garnered substantial interest from domestic retail investors, raised a total of N209.41 billion from 130,617 valid applications for 4.706 billion ordinary shares, fully allotted.

It will be recalled that GTCO, on July 15, 2024 commenced its public offer programme of nine billion ordinary shares of 50 kobo each at N44.50 per ordinary share, amounting to N400.5 billion.

This milestone concludes the first phase of GTCO’s phased equity capital raise programme, which is structured on a balanced allocation strategy based on an equal split between institutional and retail investors. This balanced approach aligns with GTCO’s commitment to fostering a well-diversified and robust investor base.

Speaking on this phase of the recapitalisation exercise, group chief executive officer of GTCO, Segun Agbaje said, “we extend our sincere appreciation to our new and existing shareholders, as well as the regulatory authorities, for their unwavering support during this initial phase of our equity capital raise.

“The strong participation and successful capital verification exercise and allotment process reaffirm the confidence investors have in our fundamentals and execution capabilities. This sets a solid foundation for accelerating our strategic roadmap, which aims to pivot the Group for transformational growth and unlock greater value across the Group’s banking and non-banking businesses.”

He said, GTCO continues to lead its peers in key profitability metrics and financial performance, saying, “building on this successful first phase, the Group will commence the second phase of its recapitalisation plan in 2025, which is strategically positioned to attract significant foreign institutional investments, reinforcing its reputation as a ‘Truly International’ financial services brand.”

Agbaje stated that, “proceeds from the combined equity raise will be strategically deployed to recapitalise the Group’s flagship subsidiary, Guaranty Trust Bank Limited (GTBank Nigeria), enhancing its ability to meet regulatory requirements and further solidify its position as a leading financial institution.

“Additionally, the funds will support Group-wide growth initiatives, including footprint expansion, product enhancement, and innovation across both Banking and Non-Banking subsidiaries. GTCO remains committed to delivering sustainable value to its stakeholders and driving innovation across the financial services landscape in Africa.”