Nigerian banker Segun Agbaje-led GTCO eyes July for $329-million capital raise

Timilehin Adejumobi -

Key Points:

  • GTCO to raise $329 million starting July, to meet new Central Bank requirements.
  • Funds target growth, expansion, and recapitalization
  • Strong Q1 profits support capital raise strategy, positioning GTCO for further expansion.

Guaranty Trust Holding Company Plc (GTCO), led by Nigerian banker and business executive Segun Agbaje, is gearing up for a significant capital raise amounting to $329.5 million, slated to commence this July. This move follows the filing of a preliminary prospectus with the Securities and Exchange Commission outlining ambitious growth plans.

The capital infusion, aimed at generating N500 billion ($329.5 million) through the issuance of ordinary shares, underscores GTCO’s strategy to bolster its technological infrastructure, expand into new businesses, and pursue strategic acquisitions in non-banking sectors. Specific details regarding the number of shares and pricing remain undisclosed pending further announcements.

Expanding horizons

The offering targets a diverse investor base, encompassing both domestic and international markets. In Nigeria, GTCO plans to attract institutional and retail investors, while the focus in the international market will be on private placements with institutional investors.

This initiative builds upon GTCO’s recent commitment to enhancing its financial structure, aligning with revised capital requirements mandated by the Central Bank of Nigeria earlier this year. The establishment of a multi-currency securities issuance program further enhances GTCO’s flexibility in accessing up to $750 million through future capital market activities.

Strategic leadership

Under the stewardship of Segun Agbaje, GTCO has expanded its footprint in the financial services industry, offering a broad spectrum of services including retail and investment banking, pension management, asset management, and payment solutions. Agbaje, who holds a 0.14-percent stake in the company, has been instrumental in steering GTCO’s robust growth trajectory.

The company’s recent financial performance underscores its readiness for expansion, with unaudited interim consolidated financial statements for the first quarter of 2024 showing a remarkable 685.9 percent year-over-year profit surge, reaching N457.13 billion ($328.81 million) from N58.17 billion ($41.71 million).

Looking ahead

The forthcoming capital raise not only aims to fortify GTCO’s financial standing but also signals its intent to capitalize on emerging opportunities in Nigeria’s evolving economic landscape. Analysts and investors alike await further details on the share offering, poised to influence GTCO’s strategic direction in the coming quarters.