GTCO secures ₦10bn private placement from single shareholder

Guaranty Trust Holding Company Plc (GTCO) has allotted a ₦10 billion private placement to a single, undisclosed institutional investor. Sources tell MoneyCentral the stake was sold t a Nigerian Pension Fund Administrator or PFA.

“They needed the capital quickly ad due to the Central Bank of Nigeria (CBN) capital verification it was best to go through a PFA,” One source said.

“That is why  it is just one person.”

GTCO said in a filing on the NGX that One (1) application for 125,000,000 ordinary shares was received in connection with the Private Placing.

The application was deemed valid under the terms of the Private Placing and was processed accordingly. The Private Placing was therefore 100% subscribed.

The transaction, priced at ₦80 per share signals confidence in the group’s post-recapitalization growth trajectory.

This private placement in the sum of ₦10 Billion was raised pursuant to Section 7.1 of the Guidelines for Licensing and Regulation of Financial Holding Companies (FHCs) in Nigeria regarding the computation of the capital of FHCs.

The ₦10 billion allotment is part of GTCO’s broader strategy to meet the Central Bank of Nigeria’s (CBN) capital requirements for Financial Holding Companies.

Furthermore, the CBN issued a letter to all financial holding companies on 14 November 2025, clarifying that the definition of minimum paid-up capital is “the aggregate of the par value of issued shares and any share premium arising from their issuance.”

This clarification followed the CBN’s recapitalisation mandate of NGN 500bn for banks, which prompted HoldCos to raise capital to meet the minimum requirement.

Pricing Dynamics: At ₦80 per share, and after shelling out N10 billion, it suggests that the “single shareholder”— likely a domestic PFA—is betting on substantial long-term value.

Dilution vs. Quality: While the issuance adds new shares to the float, the concentration of the allotment in a single, stable hand is a “quality-over-quantity” approach to equity management.

Valuation Floor: The ₦80 price point effectively sets a new “valuation floor” for the bank. If a sophisticated investor is willing to pay ₦80 privately, it challenges the public market’s appraisal of the stock. GTCO closed at N95.6 per share meaning the allotee is already in the money.

The move aligns with the CBN’s preference for “clean,” long-term capital that does not rely on speculative movements.

KYC and Compliance: Given the scale of the single allotment, the CBN and the SEC are expected to conduct rigorous vetting of the investor to ensure alignment with the “Fit and Proper” persons code for significant bank holdings.

Capital Adequacy: This ₦10 billion boost, combined with GTCO’s retained earnings, further solidifies its Capital Adequacy Ratio (CAR), which remains among the highest in the African banking sector.