By Aduragbemi Omiyale
Guaranty Trust Holding Company (GTCO) Plc has commenced its public offer of N400.5 billion aimed at strengthening its operations, including its banking subsidiary, GTBank Nigeria Limited.
In March 2024, the Central Bank of Nigeria (CBN) under the leadership of Mr Yemi Cardoso, directed banks in the country to increase their capital base on or before March 31, 2026.
Commercial banks with international operations, including GTBank, were asked to raise their minimum capital from N25 billion to N500 billion, while lenders with national licences were instructed to have at least N200 billion instead of the current N25 billion.
This directive has forced many financial institutions in the country to seek funds from the capital market, including through a rights issue, public offer, private placement, and other sources.
Business Post reports that GTCO, which also operates in other segments of the financial services landscape, intends to raise about N400.5 billion from members of the public within one month.
It is selling through a public offer about 9 billion ordinary shares of 50 Kobo each at N44.50 per share from today, Monday, July 15, 2024, to Monday, August 12, 2024.
According to details of the exercise, GTCO emphasised that the minimum subscription for the public offer is 100 shares and multiples of 10 offer shares thereafter.
Recall that last week, GTCO engaged the investing market on the reason for going to the capital market to source funds for the recapitalisation of its banking arm.
The company explained that the funds would be used to boost its operations and deliver more value to shareholders.