Guaranty Trust Holding Company Plc (GTCO) plans to raise N400.5 billion through a public offer to boost its capital base and expand its international presence. GTCO Group Managing Director, Mr. Segun Agbaje, discussed this initiative at the “Facts Behind the Offer Presentation.”
GTCO will issue nine billion ordinary shares at 50 kobo each, priced at N44.50 per share, on the Nigerian Exchange Limited (NGX). Agbaje emphasized that this capital raise would strengthen the company and support its expansion into critical sectors. “On growth strategy going forward, GTCO plans to deepen the business. Exposure to critical sectors would be bigger and stronger,” he said.
Agbaje highlighted plans to invest in Senegal, Cote d’Ivoire, Ghana, and Kenya. “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 added. He also set an ambitious goal for GTCO: “We want a market capitalization that Nigeria will be proud of. There is no Nigerian company that has ever made $1 billion in profit, and we are going to be the first to achieve it.”
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Discussing the rationale behind the offer, Agbaje pointed out the necessity of raising equity for banks, especially following a significant devaluation of the Naira. “The country has just gone through about a 200% devaluation of the Naira which, according to him, the balance sheets of banks have shrunk and the ability to do business has reduced,” he noted.
Agbaje stressed that GTCO’s capital raise is not merely a response to regulatory demands but a proactive strategy for growth. “You might not believe me,” he said, “but we had already decided to raise capital to pivot this organization for transformational growth.” He outlined plans to grow GTCO’s business both in Nigeria and internationally, enhance non-banking services, and improve technology to create exceptional customer experiences.
“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,” Agbaje explained. He added that technology is crucial for delivering these experiences across all their services, from banking to lifestyle initiatives like food and drink festivals.
GTCO plans to use the new capital for acquisitions and to upgrade its core banking software across its regions. Agbaje’s vision aligns with Nigeria’s goal of achieving a $1 trillion economy, which he believes requires larger, well-capitalized banks.
Alhaji Umaru Kwairanga, Group Chairman of NGX Group Plc, praised GTCO’s consistent excellence and innovation in the financial sector. “Over the years, GTCO from its GTBank era to the HoldCo era has consistently demonstrated remarkable resilience, innovation, and leadership in the financial sector,” he said.
Kwairanga assured that the NGX Group supports GTCO’s recapitalization efforts and highlighted recent initiatives like the NGX e-platform to enhance 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,” he said. He believes this initiative will strengthen GTCO’s capital base, boost investor confidence, and contribute to the overall stability of Nigeria’s financial system.