Guaranty Trust Holding Company (GTCO) Plc has planned to raise N400.5 billion to be used for the growth and expansion of the Group businesses and the banking businesses, including the recapitalisation of its banking subsidiary. The Holding Company planned to issue a public offer of nine billion ordinary shares of 50 kobo at an offer price of N44.
50 per ordinary shares on the Nigerian Exchange Limited (NGX), translating to a gross value of N400.5 billion. Speaking at the ‘Facts Behind the Offer Presentation’ held yesterday on the floor of Nigerian Exchange, the group managing director, GTCO, Segun Agbaje stated that the Group was planning to raise capital before the Central Bank of Nigeria (CBN) banking recapitalization exercise.
He noted that the naira devaluation has weakened the assets of banks operating in the country. He vowed that the Group would become the first financial institution to reach a $1 billion in profit. On the rationale behind the offer, he said, “banks need equity.
We have just gone through about a 200 per cent devaluation of the naira. The balance sheets of banks have shrunk and as the ability to do business have reduced. “With the federal government proposing a $1 trillion economy; we are not going to achieve a $1 trillion economy at this size of banks if you do not raise capital.
“We are going to grow the business in Nigeria and outside Nigeria and the non-banking businesses. It is impossible to do that without technology. When we do food and .
