… allocates 50% of offer to institutional investors

The application list for the Guaranty Trust Holding Company Plc (GTCO) offer for subscription of 9 billion ordinary shares opened on Monday July 15 at N44.50 per share. The offer lasts till August 12, according to the notice of the offer.

Allocation of the offer shares is between the institutional investors and the retail investors.

The allocation split is as follows: (i) 50 percent, corresponding to 4.5billion offer shares, to the Institutional Investors; and (ii) 50 percent, corresponding to 4.5billion offer shares, to the Retail Investors.
Meanwhile, the Issuer noted that it reserves the right to alter the Allocation Split based on the demand expressed by each class of investor.

“Accordingly: (i) The Offer Shares allocated to, but not subscribed to by Retail Investors may be reallocated to Institutional Investors, as long as the subscriptions submitted by Institutional Investors exceed the above allocation and support such reallocation. (ii) The Offer Shares allocated to, but not subscribed to by Institutional Investors may be reallocated to Retail Investors, as long as subscriptions submitted by Retail Investors exceed the above allocation and support such reallocation.

“The final Allocation Split between Retail Investors and Institutional Investors will be determined upon completion of the Capital Verification Exercise and the approval of the Basis of Allotment. Investors shall be informed of the final Allocation Split and Allotment through the publication of the Allotment Announcement,” GTCO in the public notice.

The lead issuing house is Stanbic IBTC Capital Limited, while the joint issuing houses are Absa Capital Markets Nigeria Limited, FCMB Capital Markets Limited and Vetiva Advisory Services Limited.
After the deduction of the costs and expenses of the Offer, which is estimated at N8.010billion (representing 2percent of gross proceeds), the net proceeds of N392.490billion will be utilised as follows: recapitalisation of GTBank Nigeria (N370billion or 94.3percent), growth and expansion of the group – acquisitions in Pension Fund Administration/ Asset Management businesses (N22.49billion or 5.7percent).

GTCO market capitalisation at offer price (pre-offer) is N1.309trillion while its market capitalisation at offer price (post-offer) is N1.710trillion assuming full subscription.

Application for the offer shares can be made in physical format at all branches of GTBank Nigeria nationwide, all branches of the Receiving Banks nationwide, the Issuing Houses, the Stockbrokers to the Offer and the other Receiving Agents throughout the Offer Period. Also, applications can also be made in electronic format through the Electronic Application Channel. Foreign Institutional Investors who are eligible to participate should contact any of the Issuing Houses.