, the parent of Guaranty Trust Bank (GTB), says it will to turn to foreign investors after raising only half of its ₦400.5 billion capital target in its recent public offer.){kind=link}
Guaranty Trust Holding Company (GTCO), the parent of Guaranty Trust Bank (GTB), says it will to turn to foreign investors after raising only half of its ₦400.5 billion capital target in its recent public offer.
Launched on July 15, 2024, the offer aimed to attract retail and institutional investors in Nigeria, closing on August 12. On Tuesday, GTCO said it raised just ₦209 billion. The bank reported receiving 130,617 valid applications for 4.7 billion ordinary shares, raising ₦207.41 billion.
It had aimed to sell 9 billion shares of 50 kobo each at N44.50 per share.
“We extend our sincere appreciation to our new and existing shareholders, as well as regulatory authorities, for their unwavering support during this initial phase,” said Segun Agbaje, GTCO’s Group CEO.
The bank said it will launch a second phase to raise capital, and will target foreign institutional investors. The offer is scheduled for 2025, though no specific date was provided.
Why this matters
GTCO’s failure to meet its ₦400.5 billion may reflect weak market sentiment, driven by Nigeria’s economic uncertainties, rising inflation, and currency devaluation that have strained disposable income and appetite for investment.
It could also imply lack of confidence in GTCO’s operational reliability—especially given recent service failures at GTBank. The shortfall highlights the difficulty of large-scale fundraising in a volatile market like Nigeria’s.
Capital and Service Issues
GTCO’s proposed ₦400.5 billion raise aims to boost its capital base and expand international operations. After deducting estimated costs of ₦8.01 billion (2% of gross proceeds), the company planned to allocate ₦370 billion (94.3%) for recapitalizing GTBank Nigeria. It planned to allot ₦22.49 billion for growth, including acquisitions in pension fund administration and asset management.
The bank operates in Ghana, Kenya and Côte d’Ivoire, and intends to expand to Senegal, with an ambition to become the first Nigerian financial institution to achieve $1 billion in profit, according to Mr Agbaje.
GTCO, Nigeria’s largest bank by market capitalization at ₦1.5 trillion, is among several top lenders seeking to meet new capital requirements imposed by the Central Bank of Nigeria. Competitors like Fidelity, FCMB, and Access Bank have reported oversubscription of their offers, through a combination of public and rights offers. Zenith Bank’s results are being awaited.
GTBank, GTCO’s flagship unit, has faced service reliability issues lately, leading to customer dissatisfaction and departures due to frequent transaction failures and operational lapses.
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