Lagos, July 8, 2024 (NAN) Guaranty Trust Holding Company Plc (GTCO) says it plans to raise N400.5 billion through a public offer on the Nigerian Exchange Ltd. (NGX).
Mr Segun Agbaje, Group Managing Director of GTCO, disclosed this on Monday during the “Facts Behind the Offer Presentation” in Lagos.
The capital raise is subject to Securities and Exchange Commission (SEC) approval and is aimed at meeting the Central Bank of Nigeria’s (CBN) recapitalisation directive for banks.
Agbaje outlined the plan to issue nine billion ordinary shares of 50 kobo each at an offer price of N44.50 per share, stating that the initiative was set in motion before the CBN’s announcement earlier in the year.
He attributed the need for additional capital to offset the effects of the Naira devaluation, which had impacted banks’ asset strength and operational capacities.
Agbaje expressed confidence in GTCO’s ability to achieve significant milestones, including becoming the first Nigerian financial institution to reach one billion dollars in profit.
He emphasised the importance of boosting the market capitalisation to enhance Nigeria’s economic standing.
“We want a market capitalisation that Nigeria will be proud of.
“There is no Nigerian company that has ever made one billion dollar in profit and we are going to be the first to achieve it,” he added.
According to him, the balance sheets of banks have shrunk and the ability to do business has reduced, thus, they need equity to operate.
In line with the Federal Government’s goal of achieving a one trillion dollar economy by 2026, Agbaje said ut was necessary for banks to increase their equity base to support expanded business operations.
Looking ahead, he outlined GTCO’s growth strategy, which includes deepening its footprint in Nigeria and expanding into critical sectors such as the pension industry.
He also said that the group planned to invest in Senegal and expand operations in Cote d’Ivoire, Ghana, and Kenya.
He stated that the group would also embark on acquisition with the new capital and also change its core-banking software across its region.
Addressing stakeholders, Alhaji Umaru Kwairanga, Group Chairman of NGX Group Plc, commended GTCO for its resilience and leadership in the financial sector.
