GTCO To Raise N400.5bn Through Public Offer

Guaranty Trust Holding Company Plc (GTCO), yesterday, hinted on plans to raise nine billion ordinary shares of 50 kobo at an offer price of N44.50 per ordinary shares which translates to N400 billion on the Nigerian Exchange Limited (NGX).

Speaking at the “Facts Behind the Offer Presentation” the Group Managing Director, (GTCO),  Segun Agbaje, on Monday said the Group was planning to raise capital before the Central Bank of Nigeria (CBN) announcement this year.

He said  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,” Agbaje said.

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

“With the Federal Government also saying he 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.”

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.

In his address, Group Chairman, NGX Group Plc, 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.

-By Peter Moses

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