N400.5 Billion Public Offer: GTCO Sets Sights On $1 Billion Profit Target

… to boost SMEs, banking business

Guaranty Trust Holding Company Plc (GTCO) has announced to raise N400.5 billion through the subscription of 9 billion ordinary shares of 50 kobo at an offer price N44.50 per share.

The offer is expected to open on July 2024, and will run for 21 business days.

According to the Managing Director, Mr. Segun Agbaje, the proceeds will be used to support Small and Medium-sized Enterprises (SMEs), expand the banking business, and recapitalize Guaranty Trust Bank Limited, the group’s principal banking subsidiary.

He expressed confidence that the offer will help the company achieve its target of $1 billion profit in the current financial year and maintain a Return on Equity (ROE) of at least 25%.

The offer is subject to Securities and Exchange Commission (SEC) approval.

“Guaranty Trust Holding Company Plc (GTCO) aims to achieve a market capitalization that Nigeria can be proud of, with a goal to become the first Nigerian company to reach a profit of $1 billion.

Mr. Agbaje said, the company’s public offer is driven by the need for equity to support business growth, particularly in the wake of the Naira’s significant devaluation.

He emphasized that the capital raise is not solely in response to regulatory requirements but rather a strategic decision to pivot the organization for transformational growth.

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GTCO plans to deepen its business in Nigeria, with increased exposure to critical sectors, and expand its presence in Senegal, Cote d’Ivoire, Ghana, and Kenya.

The company also intends to pursue acquisitions and upgrade its core-banking software across its regional operations.

Earlier in his comment, the NGX Group Chairman, Alh. Umaru Kwairanga, praised GTCO as a beacon of excellence in the capital market, recognized for its leadership and innovation in the financial sector.

He assured that the NGX Group is committed to supporting GTCO and other financial institutions in their recapitalization efforts.

The Chairman of NGX Exchange Limited, Ahonsi Unuigbe, commended GTCO’s management for their engagement with the capital market community and encouraged them to continue striving for sustainability through higher standards of corporate governance, social impact, regulatory compliance, and shareholder returns.”

Photo Caption:

L – R shows Chief Executive Officer, NGX Regulation Limited (NGX RegCo), Mr. Femi Shobanjo;  Head, Primary Market, Nigerian Exchange Limited (NGX), Mr Tony Ibeziako; Group Managing Director/CEO, Nigerian Exchange Group (NGX Group), Mr. Temi Popoola; Group Chairman, NGX Group, Alhaji (Dr.) Umaru Kwairanga; Group Chief Executive Office, Guaranty Trust Holding Company Plc (GTCO), Mr. Olusegun Agbaje; Chairman, NGX, Mr. Ahonsi Unuigbe; Deputy Managing Director, GTBank, Mr. Jide Okuntola and Doyen of the Market, Alhaji Rasheed Yussuff during the Facts Behind the Offer Presentation by Guaranty Trust Holding Company Plc today in Lagos.

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