Recapitalization watch :GTCO plans N400bn capital raise;Access Holdings Plc issued a right issue worth N350.96bn

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Two tier- one  banks, GTCO and Access Holdings Plc, revealed their capital raise plans this week. GTCO announced a capital raise of N400.5bn through a public offer on July 8, 2024, expected to last 21 days. The announced amount aims to close the funding gap. On the other hand, Access Holdings Plc issued a right issue worth N350.96bn on the same day.   

Guaranty Trust Bank Plc has announced a plan to raise N400.5bn by issuing 9 billion shares at N44.5 per share as part of its strategy to fuel expansion and innovation.

The Managing Director and Chief Executive Officer of GTCO, Segun Agbaje, disclosed that at a ‘Facts Behind the Offer Presentation by Guaranty Trust Holding Company’ in Lagos State on Monday.

He mentioned that the proposal would soon receive regulatory approval to begin.

 “What we agreed to raise is about N400bn shares by issuing 9 billion shares at N44.5 per share. I think the exchange has been kind enough to approve this. We think this is a great price. The public offer has not been launched,” he stated.

 He added that the raised capital would be strategically invested in increasing working capital and expanding the company and its shareholders domestically and internationally.

 “This is a perfect time to invest in Nigeria. The country has moved into what I call an orthodox monetary policy situation. It is a great time to build internationally and domestically, Agbaje added.

 He highlighted the bank’s long-term vision for growth and adaptation, stating, “It will be a painful process, but life adjusts, incomes adjust, habits adjust and if we are stable, we can all live happily.”

 He noted that the bank also aimed to expand its customer base and establish a track record of $1bn profit.

 “It is also time we go to countries where there is GDP growth. We are going to countries where we can make a decent amount of money and we are also eyeing a $1bn profit,” he remarked.

 Also, the Head of Primary Market, NGX, Tony Ibeziako, stated that the public cannot grow a $1tn economy without having a banking sector that rises to that challenge.

 “This recapitalisation effort by GTCO is a crucial step in ensuring that the banking sector is robust enough to support the country’s economic ambitions,” he stated.

 Ibeziako emphasised the importance of the initiative for the banking industry’s overall health and growth.

“We hope that at the end of this banking recapitalisation exercise, the GDP will increase. This is a direct call to the institutional investors to embrace this offer and to embrace the market recapitalization,” Ibeziako declared.

 In his remarks, the Group Chairman of NGX Group, Umaru Kwairanga, expressed commitment to ensuring a seamless process for GTCO and its shareholders

commencement of its N351 billion capital raising through a rights issue otherwise called an offer for subscription.

Meanwhile, one of the Africa’s leading financial services groups, Access Holdings Plc, also announced the commencement of its N351 billion capital raising through a rights issue otherwise called an offer for subscription.

The offer, which opened for subscription on Monday, July 8, will close on Wednesday, August 14, 2024.

The lender said that it’s now focused on positioning itself among the top financial institutions in Africa

“A subset of the group’s capital raising programme aiming to generate up to US$1.5 billion, the Rights Issue is designed to strengthen the Group’s financial footing and support ongoing working capital needs, including organic growth funding for its banking and non-banking subsidiaries. E LOUNGE: Engaged To A Girl I

Access Holdings Plc (‘the Company’) is pleased to notify its esteemed shareholders and the Nigerian Exchange Limited (‘the Exchange’) that the Company has obtained the approval the Securities and Exchange Commission (‘the Commission’) to execute a Rights Issue of 17,772,612,811 Ordinary Shares of N0.50 each at N19.75 per share, on the basis of 1 Ordinary Share for every 2 Ordinary Shares held as at June 7, 2024”, Access Holdings said. Head of Media and Public Relations, Access Holdings Plc, Olakunle Aderinokun, said in a statement sent to PUNCH Online on Monday that the capital raising was necessary for the group to maintain its top position in the financial services sector.

The statement quoted the Acting Group Chief Executive Officer of Access Holdings Plc, Bolaji Agbede, as saying the offer for subscription will further expand the group’s growth strategies and financial strength.

“The commencement of the Rights Issue subscription is an important step in our growth strategy and capital-raising plans, reinforcing our financial strength and accelerating our strategic ambitions. However, this execution is more than a capital raise; it is a pivotal process that will propel us towards our goal of becoming one of the top 5 financial institutions in Africa by 2027.

“We are confident that this exercise will solidify our position as a market leader and drive sustainable growth for years to come. Access Holdings’ Rights Issue offers 17,772,612,811 ordinary shares of N0.50 each at N19.75 per share.

“The Offer will be issued based on one (1) new ordinary share for every two (2) existing ordinary shares held as of Friday, 7 June 2024,” Agbede said.

The lead issuing house for the Rights Issue is Chapel Hill Denham Advisory Limited. Atlas Registrars Limited will serve as Registrars to the Offer.

Now operational in 22 countries across the globe, with 15 in Africa, Access Holdings has established itself as one of the continent’s most trusted performers over the last 20 years.

The Group reported robust financial results for the year ending December 31, 2023, with a 335 per cent increase in pre-tax profit to N729 billion and an 87 per cent surge in gross earnings to N2.59 trillion.

A final dividend of N1.80 kobo per every N0.50 kobo ordinary share for the 2023 financial year was paid to shareholders, representing a 28 per cent increase from the previous year. Access Holdings operates through a network of more than 700 branches and service outlets, spanning three continents, 22 countries, and over 60 million customer