Guaranty Trust Holding Company Plc (GTCO) has said that its proposed N400.5 billion capital raise via public offer is intended to enhance its capital base and expand its international footprint.
Speaking at the “Facts Behind the Offer Presentation,” GTCO Group Managing Director Mr. Segun Agbaje disclosed that the group 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 initiative aims to raise N400.5 billion from the investing public through the public offer.
“On growth strategy going forward, GTCO plans to deepen the business, 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 vowed that the Group would become the first financial institution to reach $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,” he said.
Speaking to the capital market community on the rationale behind the offer, he noted that banks need equity.
He said the country has just gone through about a 200% devaluation of the Naira which according to him, the balance sheets of banks have shrunk and the ability to do business has reduced.
Achieving A $1 Trillion Economy
Agbaje stated that achieving a $1 trillion economy, as targeted by the Federal Government, will not be possible with the current size of banks unless capital is raised.
He noted that the group is not raising capital solely at the central bank’s request.
“You might not believe me,” he said, “but we had already decided to raise capital to pivot this organization for transformational growth.”
“We’re going to grow the business in Nigeria and outside Nigeria. We’re going to grow the non-banking businesses. We’re going to improve our technology and when people ask me what my job description is today, I say I’m in the business of creating great customer experiences.
“It is impossible to do that without big 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.
“So irrespective of whether the central bank asked for capital raising or not, we would have raised capital.”
He expressed further that the GTCO would go into an acquisition with new capital, adding that the financial institution is going to change its core banking software across its region.
What The NGX Said
The Group Chairman, NGX Group Plc, Alhaji Umaru Kwairanga described GTCO as a beacon of excellence in the capital market, recognised as a leading issuer and one of Nigeria’s premier financial institutions.
Kwairanga said that over the years, GTCO from 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.
“We believe that this initiative will not only strengthen GTCO’s capital base but also enhance investor confidence and contribute to the overall stability of the Nigerian financial system.”
Ahonsi Unuigbe, the Chairman of NGX Exchange Ltd., lauded GTCO’s recent financial performance, citing gross earnings of N1.19 trillion and robust profitability metrics.
He urged GTCO to maintain sustainability amidst evolving economic landscapes by upholding high standards of corporate governance and regulatory compliance.
Unuigbe advised GTCO to continue delivering value to shareholders through strategic initiatives that promote long-term growth and stability in the Nigerian financial market.
