Guaranty Trust Holding Company Plc (GTCO) has unveiled ambitious plans to raise N400 billion through a public offering on the Nigerian Exchange Limited (NGX). This initiative involves issuing nine (9) billion ordinary shares of 50 kobo each at an offer price of N44.50 per share for a period of 21days. This is aimed at enhancing its capital base and supporting strategic growth initiatives.
The capital raise is driven by GTCO’s vision to achieve significant milestones and expansion. The capital raised will help them in becoming the first Nigerian financial institution to reach a $1 billion profit. This aspiration underscores its commitment to transforming operations and bolstering market capitalization.
Mr. Segun Agbaje (GTCO’s GMD) Speech
Speaking at the “Facts Behind the Offer Presentation,” GTCO’s Group Managing Director, Mr. Segun Agbaje, highlighted the strategic imperatives behind the initiative. He emphasized the need for equity in the face of economic challenges, citing a 200% Naira devaluation and its impact on banking sector balance sheets. Agbaje stressed that the decision to raise capital was made independently of regulatory directives, focusing on long-term growth and resilience.
The expansion strategy extends beyond Nigeria, with plans to invest in Senegal and expand operations in Cote d’Ivoire, Ghana, and Kenya. These moves are intended to capitalize on promising business opportunities and strengthen GTCO’s presence across key African markets. He also stress the needed for a software architectural upgrade to be able to handle this new expansion.
Alhaji Umaru Kwairanga comment
The NGX Group Plc Chairman, Alhaji Umaru Kwairanga, praised GTCO’s resilience and leadership in the financial sector. He expressed confidence that the capital raise would enhance GTCO’s market position and contribute to overall market stability. Kwairanga reaffirmed NGX Group’s commitment to supporting GTCO and other financial institutions in their growth endeavors.
In conclusion, GTCO’s capital raise initiative represents a strategic move to fortify its financial base, pursue aggressive growth, and innovate across its operations. The company’s proactive approach and ambitious targets signal confidence in its ability to navigate economic challenges. Also to capitalize on emerging opportunities, both domestically and internationally.
