Now That The GTCO Public Offer Has Closed, Here’s What Happens Next

Now That The GTCO Public Offer Has Closed, Here’s What Happens Next

Segun Agbaje, Group CEO of Guaranty Trust Holding Company’s (GTCO)

Guaranty Trust Holding Co.(GTCO) public offer that seeks to raise N400 billion to inject more capital into its Nigerian unit and meet new central bank rules has closed. The Offer closed on Tuesday August 12th, 2024.

The country’s biggest lender by market value offered 9 billion shares at N44.50 each. For investors who bought shares as part of the offer, the settlement process is predicated on the completion of the Capital Verification Exercise by the Central Bank of Nigeria (CBN), the timing of which neither the SEC nor the Issuer can determine.

Allotments will proceed for Applications that are cleared by the CBN following the Capital Verification Exercise and grant of the Allotment Approval by the SEC.

The CSCS Accounts of successful Applicants will be credited with the Dematerialised Offer Shares not later than five (5) Business Days from the Allotment Date in accordance with the SEC Rule on the Dematerialisation of Share Certificates.

The New Ordinary Shares issued under the Offer will represent 23.42 per cent. of the enlarged issued share capital of the Issuer following the Allotment Approval.

MoneyCentral has compiled the timeline for allotment to investors and trading of new GTCO shares as seen in the prospectus below.

Timeline

Over 20 Business Days there will be collation of returns and reconciliation exercise to be done by Receiving Agents and Registrar to the Offer (DataMax Registrars Limited).

Over 1 Business Day there will be submission of documentary evidence of subscriptions and payment with CBN for the Capital Verification Exercise by the Issuer.

A Capital verification exercise will then be undertaken by the CBN

Over 1 Business Day, there will be submission of basis of allotment proposal and draft Allotment announcement with the Securities and Exchange Commission (SEC) to be done by the Lead Issuing House (Stanbic IBTC Capital Ltd).

Over 10 Business Days there will be a review of the basis of allotment proposal done by the SEC

Over 1 Business Day the Lead Issuing House is to obtain SEC’s “no-objection” to the Basis of Allotment.

Over the Allotment Date + 1 Business Day time period, there will be a transfer of net Offer proceeds to the Issuer by the receiving banks (Access Bank Plc, FCMB Limited and Stanbic IBTC Bank).

Over the Allotment Date + 1 Business Day time period, there will be a publication of Allotment Announcement done by the Lead Issuing House.

Over the Allotment Date + 5 Business Day time period, there will be payment of return application monies by the Registrar to the Offer.

Over the Allotment Date + 5 Business Day time period, the Registrar to the offer will Credit CSCS Accounts with Dematerialised Offer Shares

Over the Allotment Date + 5 Business Day time period, Listing and Admission of the shares will be undertaken by Stockbrokers to the Offer

One business Day later, commencement of trading of the Offer Shares by stockbrokers will begin.

Utilisation of Offer proceeds

After the deduction of the costs and expenses of the Offer, which is estimated at N8.01 billion (representing 2.0 per cent of gross proceeds), the net proceeds of N392.49 billion will be utilised as detailed below:

Recapitalisation of GTBank Nigeria with N370 billion representing 94.3% of net proceeds and an estimated completion period of 6 months, growth and expansion of the Group through acquisitions in pension-fund administration and asset-management businesses representing 5.7% of net proceeds, with an estimated completion period of 24 months.

Segun Agbaje, Group CEO of GTCO says the bank is ready for transformational growth.

“We are not thinking of a couple of years or baby step growth, we are thinking of separating this bank and financial services group forever away from everybody,” Agbaje said.

“There is no Nigerian company that has ever made $1bn in profit, and we are going to be the first one.”