The stock price of Guaranty Trust Holding Company Plc (GTCO) on Thursday closed for trading at N82.75 per share on the Nigerian Exchange Limited (NGX), gaining 3.44per cent or N2.75per share from N80 per share it opened for trading.
Investors on the Exchange reacted to news the lender is planning to raise $100 million new ordinary shares and and proposed cancellation of a Global Depository Receipts (GDRs) listing on the from the London Stock Exchange (LSE).
The Group stock on NGX witnessed a total volume of 40,635,401.00 transactions that worth N3.37billion
The lender in a regulating filing also proposed admission of shares on the LSE’s main market for listed securities.
The $100 million Accelerated Bookbuild (ABB), is a capital raise being managed by Citibank, and what appears to be a significant move in the evolution of the bank’s listing journey on the LSE.
A GDP is a bank-issued certificate representing shares in a foreign company. It allows investors to trade the shares on international stock exchanges (like the LSE) without dealing with the complexities of cross-border settlement. The group has, since 2007, maintained a GDR listing on the LSE and in its case, 1 GDR = 50 GTBank shares, providing global investors exposure to Nigerian banking equity.
According to regulating filing on the LSE, GTCO stated that its has given notice of its intention to cancel the listing of its existing GDRs on the certificates representing certain securities (depositary receipts) category of the Official List of the United Kingdom Financial Conduct Authority (FCA) and the admission to trading of GDRs on the LSE’s main market for listed securities.
The notice stated that, “In place of the GDR listing, the Company intends for all of the ordinary shares of the Company (the Shares) to be admitted to the equity shares (international commercial companies secondary listing) category of the Official List of the FCA and to trading on the main market for listed securities of the LSE.”
Selling shares to institutional and qualified investors by the management of GTCO is part of an ongoing effort to recapitalise its main subsidiary, GTBank Plc.
That’s in line with a Central Bank of Nigeria (CBN) requirement that all lenders with international banking licenses raise their equity capital to a minimum of N500 billion or $327 million by March 2026.
The bank had previously sought shareholder approval to raise $750 million through an offering of ordinary or preference shares, convertible and non-convertible notes, bonds or any other instruments. In January, it announced the completion of a N209 billion- or $136.6 million capital raise, which it said was the first phase of a funding exercise.
The holding company, which is already listed on the Lagos-based Nigerian Exchange Limited (NGX), will be the first lender from the West African nation to list on the LSE, bringing to three the number of Nigerian firms trading in London.
The Group Chief Executive Officer of GTCO, Mr. Segun Agbaje in a statement said “This Offering and transition to a full listing on the Official List of the FCA and to trading of the Company’s shares on the London Stock Exchange’s main market for listed securities represents a pivotal moment in GTCO’s growth story, reinforcing our position as a forward-thinking African Financial Services Institution.
“This move builds on our tradition of “many firsts” and innovation, as we continue to create exceptional value for our shareholders, customers, and broader stakeholders.”
He added that, “Our consistent track record of strong performance, underpinned by disciplined execution and a relentless focus on customer excellence, gives us confidence as we embark on this next phase of growth.
“By enhancing our global visibility and access to capital, we are not just advancing our own ambitions but also unlocking transformative opportunities across the markets and customer segments we serve.”
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