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Nigeria’s Guaranty Trust Holding Company Plc (GTCO) is to have its ordinary shares listed for trading on the London Stock Exchange (LSE) with effect from 9 July (8am).
On 3 July the company announced that it had raised approximately $105 million (before costs) through an accelerated book build offer which was launched on 2 July. It will issue approximately 2.29 billion new ordinary shares in the GTCO in US dollars at a reference price of NGN 70.00 per share ($0.0459) (the “Offering Price”), according an LSE announcement. The offer proceeds were better than the company’s $100m target.
Citigroup Global Markets Limited (Citigroup) acted as Sole Global Coordinator and Sole Bookrunner in connection with the offer. The main buyers were institutional and qualified investors.
GTCO is the holding company of Guaranty Trust Bank Plc, Nigeria’s biggest bank by market capitalization. The shares will continue to have a primary listing on the Nigerian Exchange (NGX) under ticker “GTCO” and eventually they will be transferable between the two exchanges and settlement systems, subject to regulatory conditions, according to this report on African Markets.
The bookbuild price represented a 15% discount to the price that GTCO shares were trading at on the NGX on 3 July, according to this report on Bloomberg.
GTCO and other banks are continuing efforts to recapitalize to meet the Central Bank of Nigeria requirement that all lenders with international banking licences raise equity capital to a minimum of NGN 500 billion naira ($327m) by March 2026. We reported a July 2024 GTCO share offer here.
GDRs to terminate
GTCO has also given notice that it intends to cancel the listing of its existing Global Depositary Receipts (GDRs) which were first issued and listed on the LSE in 2007. Trading volume in the GDRs was low.
Holders of the GDRs have from 9 July until 24 July to return forms of election, either to exchange 1 GDR for 50 GTCO ordinary shares or for depositary instruments (Dis) with 1 DI representing 1 underlying share. The GDRs will b e delisted and stop trading on 31 July.
GTCO ordinary shares will be admitted to the category “equity shares (international commercial companies secondary listing)” of the Official List of the UK’s Financial Conduct Authority, which also admits them to trading on the LSE’s main market for listed securities.
Expanding across Africa
Miguel Azevedo, managing director and vice-chair for investment banking, Middle East & Africa, at Citigroup Inc was quoted on Bloomberg as saying that the sale “effectively marks the reopening of international equity markets for non-South African sub-Saharan African issuers. Dual listing with London offers international investors better liquidity in the stock allowing for renewed interest.”
According to Fitch Advisory on LinkedIn “This strategic shift follows GTCO’s strong Q1 2025 performance, which saw profits surge 61% to NGN 258bn, alongside improved loan quality. Group CEO Segun Agbaje emphasized the listing would enhance global visibility and funding access, building on the group’s NGN 209bn domestic capital raise completed in 2024.”
A statement from Segun Agbaje, CEO of GTCO, said the listing in London represents a “pivotal moment in GTCO’s growth, reinforcing our position as a forward-thinking African financial services institution.”
Some of Nigeria’s biggest banks are expanding in Africa, which will help to diversify earnings. In recent years the naira currency (NGN) has been very volatile.
Nigerian oil and gas group Seplat was the first Nigerian company to simultaneously dual list equity shares in London and Nigeria and raised $500m in an IPO in April 2014. In November 2014, London Stock Exchange Group and The Nigerian Stock Exchange signed a capital markets agreement to support African companies seeking dual listings in London and Lagos. The agreement followed the implementation earlier in 2014 of a unique new cross-border settlement process between the UK and Nigeria. See our story on London’s capital raising for Africa here.
GTCO shares listed on the NGX on 28 June 2021 following a restructuring and the removal of the GT Bank shares from listing. See the NGX story here.
(Photo credit Nigerian Exchange. Closing gong ceremony to celebrate the listing of GTCO shares on the NGX on 28 June 2021 following a restructuring).
