• Friday, July 12, 2024
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Here’s how GTCO wants to spend over N400bn offer proceeds

From navigating life, to getting early support, experts to harp on possibilities at GTCO autism Confab

When GTCO Plc raises about N400billion additional capital from the market, it will spend about N370billion or 94.3 percent of the net proceeds from equities capital on growth and expansion of the banking business, including the recapitalisation of GTBank Nigeria.

GTCO management noted this on Monday during the company’s facts behind the offer presentation made to shareholders, analysts and other members of the capital market community at the Nigerian Exchange Limited (NGX).

The holding company financial institution also plans to spend N22.49billion or 5.7 percent of the net proceeds from the capital raising proceed for the growth and expansion of the group (acquisition in PFA/Asset Management Businesses).

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GTCO will spend N138.5billion on branch network expansion and refurbishment, N98.5billion on technology infrastructure upgrade, N133billion on lending to corporates, commercial, retail and SMEs segment.

Segun Agbaje, Managing Director and Chief Executive Officer, GTCO noted that the proposal would soon receive regulatory approval to begin.

“What we agreed to raise is about N400bn shares by issuing 9 billion shares at N44.5 per share. I think the exchange has been kind enough to approve this. We think this is a great price. The public offer has not been launched,” he stated.

Agbaje said that the raised capital would be strategically invested in increasing working capital and expanding the company and its shareholders domestically and internationally.

“This is a perfect time to invest in Nigeria. The country has moved into what I call an orthodox monetary policy situation. It is a great time to build internationally and domestically,” he said.

The CEO also highlighted the bank’s long-term vision for growth and adaptation, saying, “It will be a painful process, but life adjusts, incomes adjust, habits adjust and if we are stable, we can all live happily.”

Guaranty Trust Holding Company Plc (GTCO Plc) had last month filed a preliminary “red herring” prospectus (Red Herring Prospectus) with the Securities and Exchange Commission (SEC) in connection with a proposed offering.

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According to the notice cited, the notice is issued in reliance on Rule 283 of the Rules & Regulations of the Securities & Exchange Commission, Nigeria. The notice read in part, “This notice does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offer, solicitation or offer to buy, or any sale of securities will be made only by a prospectus duly registered by the Securities and Exchange Commission, Nigeria (SEC) in accordance with the provisions of the Investments and Securities Act, No. 29, 2007 (the Act) and the rules and regulations of the SEC made pursuant to the Act (the SEC Rules).