Guaranty Trust Holding Company, GTCO Plc, has concluded arrangement to raise N400 billion fresh capital in pursuit of the Central Bank of Nigeria, CBN, recapitalization policy.
The Group Chief Executive Officer , GTCO, Segun Agbaje, disclosed this at the fact behind its public offer presentation at the Nigerian Exchange Limited, NGX, yesterday.
He stated: “We are going to issue 9 billion ordinary shares at N44.50 per share to the investing public subject to regulatory approval. We are not floating rights issue because we have large retail investors and customers. We want the public to enjoy our success in terms of growth and profitability.
“We are targeting acquisition from the recapitalisation exercise. Whatever money raised part of it could be used for acquisition.
“The net proceeds of the proposed offering will be used for the growth and expansion of the GTCO Plc Group businesses. Such planned growth and expansion will be effected through investment in technology infrastructure to fortify existing operations, the establishment of new subsidiaries and selective acquisition of non-banking businesses; and the recapitalisation of Guaranty Trust Bank Limited (GTBank Nigeria).”
Regarding its target investors, Agbaje said, “The proposed offering was structured as an institution offering targeted at eligible investors and for retail offerings within Nigeria. For the international market, institutional investors would be targeted via private placements.”
On the reorganization of the GTCO as holding structure, he said: “We believe that the Holding Company structure allowed us take advantage of new business opportunities in the emerging competitive landscape and strengthen our earnings base. We are very excited to get started on the next phase of our incredible journey to driving Africas growth by making end-to-end financial services easily accessible to every African and African Businesses by leveraging Technology and Strategic Partnerships.”
In its remarks, the Chairman, NGX Group, Alhaji Umaru Kwairanga commended the GTCO for coming to the Exchange to brief stakeholders of its plan to raise further capital.
He said:” We at the Exchange has already prepared for the market to assist through our electronic platform to ensure seamless participation of the general public in the recapitalisation exercise. We are very sure that GTCO as very good brand will be successful in this offer.”
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