Business
Guaranty Trust HoldCo Proposes N500bn Share Offering
Guaranty Trust HoldCo Proposes N500bn Share Offering
Guaranty Trust Holding Company (GTCO) Plc, a leading financial institution in Nigeria, recently announced its intention to raise N500 billion through a share offering. The company has taken a significant step in this direction by filing a preliminary ‘red herring’ prospectus with the Securities and Exchange Commission (SEC). This move underscores GTCO’s commitment to expanding its operations and fortifying its position in the market.
While specific details regarding the number of ordinary shares to be offered and the pricing range are yet to be finalized, GTCO’s decision to pursue this offering is in line with its strategic objectives for growth and development. The company made it clear that the filing of the red herring prospectus is compliant with Rule 283 of the Rules & Regulations of the SEC in Nigeria, emphasizing the importance of regulatory compliance in such financial transactions.
It is essential to note that the proposed offering is not an invitation to purchase securities; rather, it is a notification of GTCO’s plans to raise capital for the expansion of its group businesses. The net proceeds from the offering will be allocated towards enhancing technology infrastructure, establishing new subsidiaries, making selective acquisitions of non-banking entities, and recapitalizing Guaranty Trust Bank Limited.
The structure of the proposed offering includes an institutional segment aimed at eligible investors, a retail component within Nigeria, and a private placement targeting qualified institutional buyers outside Nigeria. This multi-faceted approach demonstrates GTCO’s strategic focus on engaging various investor categories to optimize the outcome of the offering.
Looking ahead, GTCO anticipates that the offering will commence in July 2024, with the red herring prospectus coinciding with the filing of a preliminary universal shelf registration statement. This step will enable GTCO to establish a multi-currency securities issuance program, allowing the company to issue a variety of securities to raise funds in both domestic and international markets.
In conclusion, GTCO’s proposed N500 billion share offering signifies a significant milestone in the company’s growth trajectory. By undertaking this strategic initiative, GTCO is poised to strengthen its market position, enhance its operational capabilities, and drive sustainable value creation for its stakeholders. As the offering progresses, investors and industry observers alike will keenly follow the developments, anticipating the positive impact it will have on GTCO’s future prospects.
