By Jerome Ushakang
Guaranty Trust Holding Company Plc (GTCO) has announced plans to raise up to ₦400.5 billion, about ($750 million) fortify its financial backbone (capital reserves).
This was disclosed by the Chief Executive Officer (CEO) of GTCO, Segun Agbaje while sensitising the capital market community of its plans to raise over N400 billion to shore up the capital base of the bank. preparatory for big ticket deals.
Agbaje also revealed that GTCO detailed i preliminary prospectus has been filed with the Securities and Exchange Commission (SEC), and awaiting approval.
“This is part of GTCO’s broader strategy to support the expansion and recapitalization of its subsidiary, Guaranty Trust Bank Limited (GTBank). He added.
The CEO hinted that the recapitulation exercise is expected to commence in July as soon as regulatory approval is secured.
Specifically, Guaranty Trust Bank limited has a plan to raise N400.5billion by issuing nine billion shares at N44.5 per share as part of its strategy to fund expansion innovation.
Agbaje who was addressing participants at ‘Facts Behind the Offer Presentation at the Nigerian Exchange limited (NGX)’ in Lagos on Monday stressed that the proposal would soon receive regulatory approval to begin.
“What we agreed to raise is about N400billion shares by issuing nine billion shares at N44.5 per share.
“I think the Exchange has been kind enough to approve this. We think this is a great price. The public offer has not been launched,” he stated.
He stated that the raised capital would be strategically invested in increasing working capital and expanding the company and its shareholders domestically and internationally.
“This is a perfect time to invest in Nigeria. The country has moved into what I call an orthodox monetary policy situation. It is a great time to build internationally and domestically, Agbaje added.
He highlighted the bank’s long-term vision for growth and adaptation, stating, “It will be a painful process, but life adjusts, incomes adjust, habits adjust and if we are stable, we can all live happily.”
Agbaje explain that the bank also aimed to expand its customer base and establish a track record of $1billion profit.
“It is also time we go to countries where there is GDP growth. We are going to countries where we can make a decent amount of money and we are also eyeing a $1bn profit,” he remarked.
Also, the Head of Primary Market, NGX, Tony Ibeziako, stated that the public cannot grow a $1tn economy without having a banking sector that rises to that challenge.
“This recapitalisation effort by GTCO is a crucial step in ensuring that the banking sector is robust enough to support the country’s economic ambitions,” he stated.
Also speaking, Ibeziako emphasised the importance of the initiative for the banking industry’s overall health and growth.
“We hope that at the end of this banking recapitalisation exercise, the GDP will increase.
“This is a direct call to the institutional investors to embrace this offer and to embrace the market recapitalization,” Ibeziako said.
In his remarks, the Group Chairman of NGX Group, Umaru Kwairanga, expressed commitment to ensuring a seamless process for GTCO and its shareholders.
“We are committed to doing all that is necessary to ensure that GTCO and retail shareholders have a seamless transition,“ he said.
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