- Bank emerges most traded stock as NGX opens strong with N170.14bn gains
Guaranty Trust Holding Company Plc has opened the bid to raise N400.5 billion through a Public Offer for investors in the Nigerian stock market.
To achieve the feat, the financial powerhouse which ranks among the top five leading financial groups in Nigeria, is offering 9,000,000,000 ordinary shares of 50 kobo each at N44.50 per offer share.
GTCO has a total issued and fully paid shares of N14, 715,589,612 divided into 29,431,179,224 Ordinary Shares of 50 kobo each.
Allocation of the Offer Shares is split between the Institutional Investors and the Retail Investors in equal proportions: 50 percent, corresponding to 4,500,000,000 Offer Shares, to the Institutional Investors; and 50 percent, corresponding to 4,500,000,000 Offer Shares, to the Retail Investors. The Issuer reserves the right to alter the Allocation Split based on the demand expressed by each class of investor.
Net proceeds of N392.5 billion from the capital issuance will enhance its capital adequacy and strengthen its fortress balance sheet.
Specifically, N370 billion, representing 94.3 percent of net proceeds will be spent on growth and expansion of the Group within six months after the capital raise.
Acquisitions of Pension Fund Administration / Asset Management Businesses will gulp N 22.49 billion, representing 5.7 percent. This will be applied 24 months after the close of the Offer.
GTCO’s market capitalisation Offer Price (PreOffer) stands at about N1.31 trillion and it is expected to increase to about N1.71 trillion, assuming full subscription.
GTCO Plc’s entire issued and paid-up share capital is listed on the NGX.
Meanwhile, an application has been made to the Board of the NGX for the listing of the Offer Shares to the Official List and admission to trading on the NGX Main Board.
The New Ordinary Shares will rank pari passu in all respects with the Existing Ordinary Shares.
GTBank Nigeria has completed four successful equity capital raising exercises (comprising three public offerings and one special placement) as of the date immediately before the date of this Prospectus.
In October 2001, GTBank Nigeria completed an initial public offering, the net proceeds of which amounted to N2.55 billion.
In October 2004, the Bank embarked on a follow-on public offering, upon completion of which a total sum of N21.2 billion was raised, resulting in a capitalisation of over N33 billion, which allowed the Bank to exceed the minimum capital requirements of N25 billion established by the CBN as part of its recapitalisation and consolidation plan for the Nigerian banking industry in that year.
In July 2007, GTBank Nigeria raised $824 million through a concurrent domestic and international issue of the GDRs (the Global Offer).
Upon completion of the Global Offer, the GDRs were listed on the Official List of the UK Listing Authority (now the FCA) and admitted to trading on the LSE main market for listed securities, making GTBank Nigeria the first Nigerian company with a dual listing of equity securities on the LSE and the NSE (at the time). This transaction was awarded “Nigerian Deal of the Year 2008” by The Banker Magazine.
Also in August 2011, the International Finance Corporation (the IFC), an international organisation established by Articles of Agreement among its member countries, including Nigeria, and the private arm of the World Bank and the IFC’s co-investment vehicle, IFC ALAC Holding Company III, made an equity investment of $30 million (in Naira equivalent) in the share capital of GTBank Nigeria.
The equity investment, which was a component of a U.S.$200 million funding package for the Bank, was implemented by way of a special placement under the SEC Rules pursuant to the resolution of the shareholders at a duly and properly convened Extra-ordinary General Meeting held on 21 October 2010.
GTBank Nigeria’s operating environment is intensely competitive. The Bank expects that competition in the Nigerian banking industry will continue to be intense and therefore it must continuously evolve and adapt to significant changes because of ongoing regulatory reform, technological advances and prevailing economic conditions.
GTCO emerges most traded stock as NGX opens strong with N170.14bn gains
Meanwhile, GTCO emerged as the most traded stock in terms of both volume and value, on the Nigerian Exchange Limited on Monday, with 66.90 million units valued at N3.06 billion, exchanged in 432 trades.
This is as the local bourse began the new week with a positive performance as the All-Share Index (ASI) surged by 0.30 percent to reach 99,971.64 points with investors gaining N170.14 billion.
The bullish sentiment dominated the market with 29 gainers outpacing 15 losers. Consequently, the market capitalization of listed equities increased by 0.30 percent to N56.61 trillion.
Significant price appreciations were observed in stocks such as CUTIX (+9.96%), IKEJAHOTEL (+9.45%), ROYALEX (+8.96%), SUNUASSUR (+8.40%), and REDSTAREX (+8.15%).
The positive movement of the ASI was mirrored in trading activity on the Exchange, with the total number of deals rising by 10.35 percent to 8,405 trades, and the traded value increasing by 8.02 percent to N7.37 billion. However, the total traded volume declined by 13.89 percent to 362.43 million units.
Despite the overall bullish sentiment, sectoral performance was mixed. The Consumer Goods, Oil/Gas, and Industrial Goods indices recorded declines of 0.05 percent, 0.04 percent, and 0.02 percent, respectively. Conversely, the Banking and Insurance indices posted gains of 1.32 percent and 0.08 percent, respectively.
In the money market, NIBOR declined across the board as banks with liquidity sought lower rates on Monday. Notably, the Overnight NIBOR dropped 20bps to close at 32.38 percent, reflecting improved liquidity in the system. Likewise, key money market rates such as the Open Repo Rate (OPR) and Overnight Lending Rate (OVN) nosedived to conclude at 31.47 percent and 32.19 percent, respectively.
Meanwhile, NITTY increased for most tenor buckets indicating heightened investor interest, even as the average yield on T-bills in the secondary market declined by 0.03 percent to close at 20.12 percent.
Trading activity in the secondary FGN Bonds recorded negative activity, resulting in a 0.03 percent increase in the average yield to 19.29 percent. In the sovereign Eurobonds market, positive sentiment was evident across various maturities, resulting in a 0.02 percent decline in the average yield to 9.74 percent.
In the official NAFEM market, the naira depreciated by 0.86 percent to close at N1, 577.29 per dollar. In the parallel market, the naira closed at N1, 545 per dollar.
