GTCO targets international investors with direct London listing

Guaranty Trust Holding Co. Plc (GTCO), the parent company of Nigeria’s GTBank, plans to list its ordinary shares directly on the London Stock Exchange (LSE) in an effort to attract foreign investors and bolster its capital base.

The move follows a $100 million share sale to institutional and qualified investors, part of GTCO’s broader plan to recapitalize its banking subsidiary, Guaranty Trust Bank Plc, and meet stricter capital rules set by Nigeria’s central bank. The Central Bank of Nigeria (CBN) now requires banks with international licenses to raise their equity capital to at least ₦500 billion (about $327 million) by March 2026.

GTCO said the direct listing is aimed at improving liquidity and giving investors easier access to its shares. The company is cancelling its global depository receipts (GDRs) on the LSE — issued in 2007 during a $750 million capital raise — due to low trading volumes that limited their usefulness. GDR holders will have the option to convert their securities into ordinary shares for trading either in London or on the Nigerian Exchange (NGX).

“The listing of our ordinary shares in London marks a significant step in our evolution as a pan-African financial institution and will better position us to raise funds and deepen investor confidence,” said Segun Agbaje, GTCO’s chief executive officer.

The new listing will make GTCO the first Nigerian bank to list its ordinary shares on the LSE, joining companies like Seplat Energy Plc and Airtel Africa Plc. Trading is expected to commence on July 9, pending regulatory approval.

GTCO and other top Nigerian lenders are under pressure to strengthen their capital after the naira lost more than 70% of its value over the past two years, weakening banks’ buffers and raising the need for fresh funding.

Many lenders are also expanding across Africa to diversify away from their domestic market and tap new revenue streams.

Earlier this year, GTCO raised ₦209 billion (about $137 million) in the first phase of its recapitalization drive. The group plans to channel new funds into consolidating GTBank’s capital and pursuing expansion opportunities, particularly in Nigeria’s fast-growing pension and asset management industries.

What Are GDRs?

Global depository receipts are certificates issued by a bank that represent shares in a foreign company. They are often used by firms in developing countries to access investors in major financial centres without a full direct listing. In GTCO’s case, each GDR represented 50 ordinary shares.

While GDRs can provide access to global capital, they sometimes suffer from low liquidity, as was the case for GTCO. The company is now offering its GDR holders the option to exchange their certificates for either:

• Depositary interests for trading in London through CREST (the UK’s securities settlement system); or
• Ordinary shares for trading on the Nigerian Exchange (NGX).

Significance for Investors

The shift aims to make GTCO’s shares more attractive to foreign investors by increasing transparency and tradability on the LSE. It also signals the company’s intent to strengthen its international capital market profile.

GDR trading will end on July 30, with the formal delisting from the LSE scheduled for the same date.