GTCO Plans $329 Million Capital Raise in July

Guaranty Trust Holding Company Plc (GTCO), helmed by Nigerian banker and business leader Segun Agbaje, is preparing for a $329.5 million capital raise, which will begin in July. This action follows the submission of a preliminary prospectus to the Securities and Exchange Commission outlining aggressive expansion aspirations.

The capital infusion, which aims to generate N500 billion ($329.5 million) through the issuance of ordinary shares, reflects GTCO’s objective of strengthening its technology infrastructure, expanding into new companies, and pursuing strategic acquisitions in non-banking areas. Specifics about the number of shares and pricing remain unknown pending additional announcements.

The offering is aimed at a diversified investment base, including both domestic and international markets. GTCO intends to recruit institutional and individual investors in Nigeria, while its overseas strategy will focus on private placements with institutional investors.

This approach builds on GTCO’s previous commitment to strengthening its financial structure, which aligns with new capital requirements imposed by the Central Bank of Nigeria earlier this year. GTCO’s new multi-currency securities issuance program increases its ability to raise up to $750 million through future capital market activity.

Under Segun Agbaje’s leadership, GTCO has grown its presence in the financial services business, providing a wide range of services such as retail and investment banking, pension management, asset management, and payment solutions. Agbaje, who owns 0.14 percent of the company, has played a key role in driving GTCO’s rapid expansion.

The company’s unaudited interim consolidated financial statements for the first quarter of 2024 show a remarkable 685.9 percent year-over-year profit surge, reaching N457.13 billion ($328.81 million), up from N58.17 billion ($41.71 million).

The next capital raise not only strengthens GTCO’s financial position, but also demonstrates its intention to capitalize on new opportunities in Nigeria’s changing economic landscape. Analysts and investors alike are awaiting more information on the share sale, which is expected to impact GTCO’s strategic orientation in the coming quarters.

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