GTCO Launches 400Billion Capital Raise, Aims for 1Billion Profit

Guaranty Trust Holding Company (GTCO), one of Nigeria’s leading financial institutions, has announced a significant capital raise of ₦400 billion through a public offer on the Nigerian Exchange Group (NGX). The company is offering 9 billion shares at ₦44.50 each, a move that is expected to bolster its financial strength and expand its reach in West and East Africa. 

The proceeds from this capital raise will be strategically invested in several key areas. GTCO plans to recapitalize GTBank Nigeria, enhance its asset management and pension businesses, and expand its loan portfolio. These investments aim to sustain the company’s profitability and support its growth ambitions across the African continent.

Segun Agbaje, Group CEO of GTCO, highlighted the company’s impressive performance record during a “Fact Behind the Offer” presentation at the NGX. “GTCO has consistently delivered strong returns, with an average return on equity (RoAE) of 29% over the past decade and a 253% return on investment during the same period,” Agbaje noted.

In addition to its core banking operations, GTCO has diversified into non-banking sectors such as fintech, asset management, and pension management. The company aims to generate 5% of its group profit from these businesses within the next three years, underscoring its commitment to innovation and growth.

Agbaje also shared an ambitious vision for the future, pledging to make GTCO the first Nigerian company to achieve a billion-dollar profit. He urged stakeholders to support the public offer, emphasizing the solid foundation and promising prospects of the company.

This capital raise aligns with a recent directive from the Central Bank of Nigeria (CBN), which calls for banks to increase their capital thresholds in response to economic challenges that have eroded asset values. Agbaje pointed out that GTCO had already planned to raise fresh capital months before the CBN directive, demonstrating the company’s proactive approach to financial stability.

With a market capitalization of ₦1.39 trillion, GTCO stands as one of the largest and most profitable companies on the NGX. It accounts for approximately 9% of the stocks traded on the exchange, reflecting its significant influence in the Nigerian financial market.

The public offer represents a strategic move for GTCO as it seeks to solidify its leadership position and drive long-term growth in a competitive and evolving financial landscape.