Minimum capital requirement : GTCO submits proposal to SEC for N500bn public offer

Guaranty Trust Holding Company Plc (GTCO), has filed a preliminary “red herring” prospectus with the Security & Exchange Commission (SEC) in connection with a proposed offering for subscription of ordinary shares of 50 kobo each in its share capital to raise gross proceeds of up to N500 billion.

The Group is complying with the Central Bank of Nigeria (CBN) directive to banks to raise fresh capital as the Federal Government is targeting a $1 billion economy.

The number of ordinary shares to be offered and the price range for the proposed offering anticipated to open by July, 2024 have not yet been determined, according to a document.

The purpose of the offer, according to the document is “for (i) the growth and expansion of the GTCOPLC Group’s businesses.

The document stated that, “Such planned growth and expansion will be effected through investments in technology infrastructure to fortify existing operations, the establishment of new subsidiaries and selective acquisitions of non-banking businesses; and (ii) the recapitalisation of Guaranty Trust Bank Limited.”

On target investors, the document said the proposed offering “is structured as an institutional offering targeted at eligible investors and a retail offering within Nigeria and a private placing to persons reasonably believed to be qualified institutional buyers outside Nigeria.”

For the listing and admission to trading, the document said “An application will be filed for the approval of the Board of the Nigerian Exchange Limited (NGX) with respect to the listing and admission to trading of the Ordinary Shares on the NGX Official List. “

The document said “the filing of the Red Herring Prospectus was undertaken with a concurrent filing of a preliminary universal shelf registration statement.

“The universal shelf registration will permit GTCOPLC to establish a multi-currency securities issuance programme to issue various types of securities, or any combination of such securities, in one or more offerings, from time to time, to raise proceeds in an aggregate amount of up to $750 million (or equivalent amount in Nigerian Naira) in the Nigerian/international capital markets during the validity period of the Programme.

“The Proposed Offering is expected to be the first issuance under the Programme.”