Table of Contents
Key Point
- Nigerian banking giant GTCO seeks to raise $250 million through a public offer of 9 billion shares at N44.5 ($0.03) per share.
- The capital will boost working capital and fuel GTCO’s domestic and international growth, including acquisitions in pensions and asset management.
- Under CEO Segun Agbaje, GTCO aims for $1 billion profit and has reported a massive 685.9% profit surge in Q1 2024.
Guaranty Trust Holding Company Plc (GTCO) led by Nigerian banker and business executive Segun Agbaje, has commenced a public offer of 9 billion ordinary shares at N44.5 ($0.03) per share. This offer, aiming to raise N400.5 billion ($250 million), will remain open until August 12.
Equitable share allocation
According to a recent update, the share distribution will be evenly split between institutional and retail investors, with 4.5 billion shares allocated to each group. GTCO retains the flexibility to adjust this allocation based on investor demand, ensuring optimal distribution. Unsubscribed shares from one category may be reallocated to the other.
The final allocation will be determined after a capital verification exercise and the approval of the basis of allotment. An allotment announcement will communicate the final allocation to investors.
Stanbic IBTC Capital Limited is the lead issuing house for this offer, with Absa Capital Markets Nigeria Limited, FCMB Capital Markets Limited, and Vetiva Advisory Services Limited as joint issuing houses.
Strategic importance of capital raise
Segun Agbaje, GTCO’s Managing Director and CEO, highlighted the strategic importance of the capital raise, aiming to enhance working capital and fuel both domestic and international expansion, including acquisitions in Pension Fund Administration and Asset Management.
This initiative aligns with the Central Bank of Nigeria’s recapitalization directive. Agbaje emphasized that the current monetary policy environment makes this an opportune moment to invest in Nigeria.
GTCO expands under Segun Agbaje, targets $1 billion profit
Under Segun Agbaje’s leadership, GTCO has significantly expanded its footprint in the financial industry, encompassing retail and investment banking, pension management, asset management, and payment solutions.
Agbaje, who holds a 0.14 percent stake in GTCO, recently reiterated the leading lender’s ambitious goal of becoming the first Nigerian company to achieve a $1 billion profit. A proposed N400.5 billion ($248.9 million) capital raise will fuel GTCO’s expansion initiatives.
The group’s first-quarter 2024 financial results underscore its growth momentum, with profit soaring 685.9 percent year-over-year to N457.13 billion ($328.81 million) from N58.17 billion ($41.71 million).
