Guaranty Trust Holding Company Plc (GTCO) has unveiled plans for a substantial N400.5 billion capital raise through a public offer, aimed at fortifying its financial foundation and expanding its global presence.
The announcement, made during the “Facts Behind the Offer Presentation,” featured insights from GTCO’s Group Managing Director, Mr. Segun Agbaje, who outlined the strategy to issue nine billion ordinary shares priced at N44.50 per share on the Nigerian Exchange Limited (NGX).
This initiative seeks to secure N400.5 billion from public investors, marking a pivotal step in the company’s growth trajectory.
Highlighting the rationale behind the capital raise, Agbaje emphasized GTCO’s strategic imperative to deepen its business operations, particularly in vital sectors critical to sustained economic impact.
“Beyond Nigeria, our expansion plans include significant investments in Senegal, Cote d’Ivoire, Ghana, and Kenya,” Agbaje affirmed, underscoring the company’s commitment to leveraging favorable business environments abroad.
Addressing the current economic challenges, Agbaje acknowledged the adverse impact of Naira devaluation on banks’ asset strength.
He stressed the proactive nature of GTCO’s capital raise, which was decided prior to recent regulatory announcements, as a crucial step in mitigating these effects and positioning the company for future profitability.
“Our goal is to become the first Nigerian financial institution to achieve a $1 billion profit milestone, aligning our aspirations with national economic objectives,” Agbaje asserted.
In discussing the broader implications of the capital raise, Agbaje highlighted the necessity for banks to bolster their equity positions amidst ongoing economic transformations.
He pointed out that achieving Nigeria’s ambitious $1 trillion economy target necessitates increased capitalization within the financial sector, emphasizing GTCO’s proactive stance in this regard.
Beyond financial strengthening, Agbaje articulated GTCO’s commitment to enhancing technological capabilities and customer experience across its diverse business segments.
“Our investment in technology is integral to delivering exceptional customer service in banking, food and drink, and fashion sectors,” he explained, highlighting the transformative impact of advanced technology platforms on operational efficiency and client satisfaction.
The announcement garnered positive feedback from NGX Group Plc Chairman, Alhaji Umaru Kwairanga, who commended GTCO’s resilience and leadership in the financial markets.
Kwairanga affirmed NGX’s steadfast support for GTCO’s recapitalization efforts, citing the initiative as a testament to the company’s commitment to market transparency and investor confidence.
In conclusion, the N400.5 billion public offer by GTCO represents a bold step towards fortifying its market position, expanding internationally, and driving sustainable growth across its operations.
With robust strategic planning and a commitment to innovation, GTCO aims to set new benchmarks in profitability and market leadership, contributing significantly to Nigeria’s financial stability and economic resilience in the years ahead.
