Guaranty Trust Holding Company Plc (GTCO) has revealed that its N400.5 billion public offer was undersubscribed by 48%, raising only N209.01 billion. The offer, which involved 9 billion ordinary shares priced at N44.50 per share, attracted 130,617 valid applications for approximately 4.7 billion shares, representing 52% of the total subscription. GTCO cited the high share price and the lack of a rights issue as key factors for the shortfall. Despite this, the company considers the capital raise a strategic milestone in its long-term growth plans.
The undersubscription came amid a challenging market environment where high share prices deterred new investors. Capital market stakeholders suggested that a hybrid offer, which would have allowed existing shareholders to take up their rights, could have improved participation. Competitors such as Access Holdings and FCMB Group saw success by extending their offers to attract more investors. However, GTCO chose not to extend its offer, signaling its intention to raise fresh capital in 2025.
GTCO remains optimistic about its future growth, with CEO Segun Agbaje expressing gratitude to shareholders and regulators for their support. The funds raised will be used to recapitalize GTCO’s subsidiary, Guaranty Trust Bank (GTBank Nigeria), to strengthen its regulatory standing and position it for further growth in both banking and non-banking sectors.