GTCO to raise N10bn through private investors
GTCO to raise N10bn through private investors
Guaranty Trust Holding Company Plc (GTCO) has secured approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to proceed with a private placement of its ordinary shares, subject to the fulfilment of regulatory requirements.
The development is contained in a statement posted by the company on the Nigerian Exchange (NGX).
According to the firm, the private placement of N10 billion will be raised pursuant to Section 7.1 of the guidelines for licensing and regulation of financial holding companies (FHCs) in Nigeria, relating to the computation of the capital of FHCs.
“The proposed private placement is being undertaken pursuant to a shareholders’ resolution passed at the annual general meeting of the company held on 9 May 2024, which authorised the board to establish a capital-raising programme of up to $750 million or its equivalent through the issuance of ordinary shares, preference shares, convertible and/or non-convertible bonds or any other instruments, whether by way of a public offering, private placement, rights issue, book-building process or any other method or combination of methods, in such tranches, and at such dates and upon terms and conditions as may be determined by the board,” GTCO said.
“As a result, the board has authorised the company to embark on a private placement to raise N10 billion through the allotment of 125 million ordinary shares of N0.50 each.
“The company has entered into an arrangement, in connection with a best-efforts private placement, for gross proceeds of up to N10 billion from the sale of up to 125 million ordinary shares of the company at N80 per share.”
According to GTCO, the offering is scheduled to close on December 31 and is subject to certain conditions, including the receipt of all necessary approvals.
The firm added that professional parties have agreed to use their respective reasonable endeavours to procure a placee for the private placement shares, noting that the offer is not underwritten.
Guaranty Trust Bank Limited, GTCO’s banking arm, announced on August 29 that it had surpassed the CBN’s minimum capital requirement for commercial banks with international authorisation, with its capital base now standing at N504 billion.
