GTCO, the holding company of Guaranty Trust, a banking subsidiary with a market capitalisation of ₦840 billion, will list additional shares on the Nigerian and London Stock Exchange as part of plans to raise $750 million.
The share sale will allow the bank to meet and surpass a new working capital requirement of ₦500 billion, adjusted by the Central Bank in February 2024.
“A decision has not been reached if the shares and bonds will be issued in tranches, series, or proportions, so it’s possible to see multiple issuances until the said amount is raised,” said Nelson Abudah, a research analyst at Afrinvest.
Abudah also noted that GTCO’s would prefer to raise the amount on the NGX but there’s it’s doubtful the local market is robust enough for the size of capital it’s looking to raise, driving a need to look elsewhere.
“It calls into question the depth and size of the NGX. On one hand, there’s the reality that the NGX can’t create enough funds for such an amount to be raised. Then again, there’s the fact that it’s not only GTCO that’s looking to tap into the Nigerian market at this point in time,” Abudah said.
Get the best African tech newsletters in your inbox
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : TechCabal – https://techcabal.com/2024/05/13/gtco-targets-750-million-capital-raise-on-ngx-and-london-stock-exchange/
