Guarantee Trust Holding Company (GTCO) Plc successfully raised N209.41 billion in its public offering, the company announced in a statement on Monday. The public offer marks the first stage of GTCO’s equity capital raise program.
The financial institution confirmed that the first phase of the offering was completed following approval from the Securities and Exchange Commission (SEC) on the basis of allocation and a capital verification operation conducted by the Central Bank of Nigeria (CBN).
According to GTCO, they received 130,617 legitimate applications for 4,705,800,290 common shares, all of which were allotted.
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“This milestone concludes the first phase of GTCO’s phased equity capital raise programme, which is structured on a balanced allocation strategy based on an equal split between institutional and retail investors,” GTCO said.
“This balanced approach aligns with GTCO Plc’s commitment to fostering a well-diversified and robust investor base,” it noted.
GTCO's CEO shows appreciation to shareholders
GTCO's Group Chief Executive Officer, Segun Agbaje, thanked shareholders for their support throughout the initial stage of the recapitalisation process.
“We extend our sincere appreciation to our new and existing shareholders, as well as the regulatory authorities, for their unwavering support during this initial phase of our equity capital raise,” Agbaje said.
“The strong participation and successful capital verification exercise and allotment process reaffirm the confidence investors have in our fundamentals and execution capabilities.”
“This sets a solid foundation for accelerating our strategic roadmap, which aims to pivot the Group for transformational growth and unlock greater value across the Group’s Banking and Non-Banking businesses.”
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Second phase of recapitalisation program to take place
According to GTCO, the recapitalisation program's second phase will take place later in the year.
In order to strengthen the company's reputation as a global brand, the second phase would focus on large foreign institutional investments, the company noted.
The company noted that the funds raised in the initial phase will be used to recapitalise Guarantee Trust Bank (GTB) Limited, GTCO’s flagship subsidiary. This will help enhance the bank’s capacity to meet regulatory standards and further solidify its position as a leading financial institution.
“Additionally, the funds will support Group-wide growth initiatives, including footprint expansion, product enhancement, and innovation across both Banking and Non-Banking subsidiaries,” the company added.
The CBN announced an increase in the minimum capital requirements for merchant, commercial, and non-interest banks on March 28, 2024.
The capital base for commercial banks with foreign licences was changed by the CBN to N500 billion. The minimum capital requirement must be met by all banks between April 1, 2024, and March 31, 2026.
