Nigeria’s GTCO Plans Second Listing on London Stock Exchange

Aiming to boost its potential for tapping international markets for additional capital and improving the accessibility of its shares to investors abroad, Nigeria’s biggest lender Guaranty Trust Holding Company (GTCO), the parent company of GTBank, is planning a secondary listing on the London Stock Exchange (LSE) to raise $100 million by offering new shares.

The net proceeds of this offering will be used primarily for the further recapitalization of GTBank Nigeria and are intended to be deployed in accordance with GTCO’s growth strategy, particularly, to facilitate growth of the loan portfolio (retail, SME, and institutional banking), fortification of its information technology infrastructure, branch network expansion, and to leverage emerging opportunities in Nigeria and the operating environments where it maintains a banking presence.

GTCO, a leading sub-Saharan banking franchise, has proposed cancellation of Global Depository Receipts (GDRs) listed on the LSE. The $100 million Accelerated Bookbuild (ABB), is a capital raise being managed by Citibank, and what appears to be a significant move in the evolution of the bank’s listing journey on the LSE.

A GDP is a bank-issued certificate representing shares in a foreign company. It allows investors to trade the shares on international stock exchanges (like the LSE) without dealing with the complexities of cross-border settlement.

GTCO Group CEO Segun Agbaje said that this offering and transition to a full listing on the official list of the UK’s Financial Conduct Authority (FCA) and to trading of the company’s shares on LSE’s main market for listed securities represents a pivotal moment in GTCO’s growth story, reinforcing their position as a forward-thinking African Financial Services Institution.

Agbaje said that the move builds on our tradition of “many firsts” and innovation, as we continue to create exceptional value for our shareholders, customers, and broader stakeholders. GTCO’s consistent track record of strong performance, underpinned by disciplined execution and a relentless focus on customer excellence, gives the company confidence as they embark on this next phase of growth.

“By enhancing our global visibility and access to capital, we are not just advancing our own ambitions but also unlocking transformative opportunities across the markets and customer segments we serve,” Agbaje added.

Selling shares to institutional and qualified investors by the company is part of an ongoing effort to recapitalise its main subsidiary, GTBank. That is also in line with a Central Bank of Nigeria (CBN) requirement that all lenders with international banking licenses raise their equity capital to a minimum of $327 million by March 2026.

The bank had previously sought shareholder approval to raise $750 million through an offering of ordinary or preference shares, convertible and non-convertible notes, bonds or any other instruments. In January, it announced the completion of a $136.6 million capital raise, which it said was the first phase of a funding exercise.

Strong Profitability

GTCO has consistently demonstrated strong profitability (Q1 2025 Return on Average Equity (RoAE) of 36.3% and averaging an RoAE of 30.6% and the Return on Average Assets (RoAA) of 5.1% in the last decade till 2024, which is at a clear premium to Nigerian tier 1 banking peers.

GTCO has the highest Tier 1 and Total Capital Ratios among key Nigerian peers, with 36% and 39.3% as at 2024, respectively. Furthermore, the company’s strengthened equity base supports organic and inorganic growth as well as a higher single obligor limit that is conducive for larger credit ticket expansion.