By Kayode Ogunwale


Guaranty Trust Holding Company Plc (GTCO) announced its intention to raise nine billion ordinary shares of 50 kobo each at an offer price of N44.50 per share on the Nigerian Exchange Limited (NGX). This public offer aims to raise a total of N 400 billion from investors, as revealed during the “Facts Behind the Offer Presentation” by the Group Managing Director, Mr. Segun Agbaje.
Mr. Agbaje highlighted the Group’s strategy to raise capital preemptively in response to the Naira devaluation and its impact on banks’ assets in Nigeria following the Central Bank of Nigeria’s recent announcements. He expressed confidence in GTCO’s prospects, emphasizing the Group’s ambition to become the first financial institution to achieve a $1 billion profit milestone.
This move signifies GTCO’s proactive approach to financial management and growth amidst challenging economic conditions, positioning the Group for sustained success and profitability in the dynamic Nigerian banking sector.
In addressing the capital market community regarding the justification for the offer, he articulated the pressing need for banks to fortify their equity positions. A crucial factor cited was the recent substantial devaluation of the Naira, reaching a staggering 200 percent. This economic instability has resulted in a contraction of banks’ balance sheets, impeding their operational capacity.
Moreover, the aspirational target set forth by the Federal Government to establish a $1 trillion economy underscores the imperative for banks to bolster their financial foundations. The speaker emphasized that achieving such a formidable economic milestone is contingent upon the infusion of capital into the banking sector.
It is noteworthy that the decision to raise capital transcends regulatory directives, as the institution had embarked on this strategic initiative autonomously. The overarching objective is to reposition the organization for a paradigm shift towards transformative growth. This proactive approach underscores a steadfast commitment to navigating the prevailing economic challenges and positioning the institution for sustained advancement.
“We’re going to grow the business in Nigeria and outside Nigeria. We’re going to grow the non-banking businesses. We’re going to improve our technology and when people ask me what my job description is today, I say I’m in the business of creating great customer experiences.
“It is impossible to do that without big technology. When we do food and drink, it is about our customer experience. When we do fashion, it is about our customer experience and when we do banking, it is about our customer experience, and you cannot do that without the right technology platform.
“So irrespective of whether the central bank asked for capital raising or not, we would have raised capital.”
On the growth strategy going forward, it was emphasized by Mr. Agbaje that Guaranty Trust Bank (GTCO) is set to expand its presence in Nigeria by further enhancing its operations and increasing its exposure to key sectors. Additionally, the plan includes expanding into promising markets such as Senegal, Cote d’Ivoire, Ghana, and Kenya to capitalize on potential growth opportunities.
Furthermore, Mr. Agbaje highlighted the intention for GTCO to engage in acquisitions with a bolstered capital base, as well as upgrading its core-banking software across its regional operations to enhance efficiency and customer experience.
In his remarks, Alhaji Umaru Kwairanga, the Group Chairman of NGX Group Plc, praised GTCO as a standout institution in the capital market, renowned for its excellence and status as a top issuer and leading financial entity in Nigeria.
Moreover, Mr. Kwairanga acknowledged GTCO’s consistent display of resilience, innovation, and industry leadership throughout its evolution from GTBank to the HoldCo era. He reaffirmed NGX Group’s unwavering commitment to supporting GTCO in its future endeavors.