GTCO Set to Raise N400.5bn Via Public Offer

Kayode Tokede

Guaranty Trust Holding Company Plc (GTCO), yesterday revealed that it planned to raise nine billion ordinary shares of 50 kobo at an offer price of N44.50 per ordinary shares via public offer on the Nigerian Exchange Limited (NGX).

This translated into N400 billion ordinary shares the Group planned to raise from investing public through public offer.

The offer is subject to Securities and Exchange Commission (SEC) approval.

Speaking to capital market community at the “Facts Behind the Offer Presentation” in Lagos, the Group Managing Director, GTCO, Mr.  Segun Agbaje stated that the Group was planning to raise capital before the Central Bank of Nigeria (CBN) announcement this year, stressing that the Naira devaluation has weaken 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.

“We want a market capitalization that Nigeria will be proud of. There is no Nigerian company that has ever made a $1 billion in profit and we are going to be the first to achieve it,” he said.

On the rationale behind the offer, he said, “Banks need equity. We’ve just gone through about a 200per cent devaluation of the Naira. The balance sheets of banks have shrunk and the ability to do business has reduced. 

“With the Federal Government also saying they wants a $1 trillion economy; you are not going to achieve a $1 trillion economy at this size of banks if you do not raise capital.

“So, we are not only raising capital because the central bank asked us to do it. You might not believe me, but we had decided before that we were going to raise capital and that we were going 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.”

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.

Earlier in his address, Group Chairman, NGX Group Plc, Alh. 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 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.

“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.”

The Chairman, NGX Exchange Limited,  Ahonsi Unuigbe commended the Board and Management of GTCO for leveraging the Facts Behind presentations platform to increase its engagement with the capital market community.

Unuigbe noted that the recent performance of GTCO has been nothing short of stellar.

With the fast-changing macroeconomic environment in Nigeria and globally, he encouraged the management of GTCO to continue to strive for sustainability by adhering to higher standards of corporate governance, deeper social impact, higher regulatory compliance, and greater returns for shareholders.

“The recent performance of GTCO has been nothing short of stellar. The company achieved gross earnings of N1.19 trillion, a remarkable 120% increase from the previous year. Additionally, GTCO reported a profit before tax of N609.31 billion and a profit after tax of N539.65 billion, reflecting a significant upward trajectory. These figures highlight GTCO’s robust financial health and strategic acumen, positioning it as one of the best performers in the industry with exceptional return on equity and return on assets,” he added.