Agbaje: GTCO’s LSE Listing Will Unlock Africa, Proof Nigeria’s Macro-Economic Environment Changing

•List 2.88bn shares on NGX, LSE 

•GTCO now financing powerhouse, says LSE

Eromosele Abiodun in London

Group Chief Executive Officer, Guaranty Trust Holding Company (GTCO), Mr. Segun Agbaje, has stated that yesterday’s listing of the company’s shares on the London Stock Exchange (LSE) will unlock opportunities for Nigeria and Africa, stressing that GTCO’s success is a testament that the story of Nigeria’s macro-economic environment is changing.

The company listed a total of 2,288,250,000 shares after the cancellation of its Global Depository Receipts (GDRs), which was listed on the LSE 18 years ago.

With yesterday’s listing, GTCO emerged the first financial institution in Nigeria to be listed on the LSE and the third company in Nigeria to do so after Seplat Energy Plc and Airtel Africa Plc.

In a related development, Guaranty Trust Holding Company Plc’s Public Offer of 2,288,250,000 Ordinary Shares of 50 Kobo each at N70.00 per share was listed at the Nigerian Exchange Limited (NGX) yesterday.

With the listing of the additional 2,288,250,000 ordinary shares, the total issued and fully paid-up shares of Guaranty Trust Holding Company Plc has now increased from 34,136,979,514 to 36,425,229,514 ordinary shares of 50 Kobo each.

While speaking to newsmen after the listing, Agbaje stated, “We have delisted the GDR, which means it is now listed on the secondary market like the new shares.

“It means that anytime you want to raise capital, you can come back to the London Stock Exchange, you have created another opportunity for you to raise capital. That is why we call it the best of both worlds, you have the Nigeria Exchange Limited (NGX) and we have the LSE.”

Clarifying why the bank took the decision to list on the LSE, he said, “We have to unlock Nigeria and Africa. We wanted to see whether the macro story of Nigeria has changed, whether you can go out and raise money in the international market. It is always good to have options.”

Agbaje stated, “What we have gone through, it’s tough, really is, but we’re here. So, emotions aside, I want to start by thanking the London Stock Exchange. I want to thank everybody who has joined us today.

“And it just always reminds me that it is never the easy road. It’s always the right road that gets you where you’re going to go to. Every time we go on the road, we have to fight the Nigerian problem, and we always have to come through it.

“But it’s just about doing things properly. It’s always about doing things right, having the right values, and I think it’s paid off greatly for this organisation.”

He explained, “I was talking to a gentleman who I will leave nameless at this point. He was a financial editor, and I said to him, you must always find balance between not being scary and telling the truth and telling it like it is.

“I think, for my board and all those who have been with me, one of the most important things to us is always to play by the rules. Tell it like it is, and then we will live with whatever the outcome is.

“I must thank all those who work tirelessly, the lawyers, the bankers and then a small group of people in Guaranty Trust who basically gave their lives over the last few months to make it happen. My role is always the simplest.

“I dive in at the end and I go on the road and tell a story, but everybody who’s behind and has worked hard deserves all the kudos. You can’t tell a good story if you don’t have a good background. The story only works because of the hard work.”

Agbaje added, “They tell me now the city’s getting calls, people want to do this deal. I wish them the best in life. I definitely don’t want to do the deal again. I think having done it once is more than enough.

“So, please, thank you. Thank you. Thank you very much. We remain humbled, we remain grateful, and we will always try to do things properly. Thank you very much.”

Head of International Primary Markets, London Stock Exchange Group, Tom Attenborough, described GTCO as a financial powerhouse, which had achieved what its peers could only dream of.

Attenborough stated, “We are really delighted to welcome you all to open the market to celebrate the recent fundraising and, of course, the list of your ordinary shares. You know, there is photographic evidence of the original sort of Global Depository Receipt listing back in 2007.

“And a few more of you, of course, were here in 2017 at the faculty celebrating the 18-year anniversary of GDR.

“Over those years since the original listing, you have been continuing to absolutely blaze a trail as a business. And you know, we’re here to celebrate that, I think, as much as the listing itself today. We look back to 2007; you were the first Nigerian company, the first African bank to list GDRs on the London Stock Exchange.

“Now, fast forward 18 years, you’re the first West African financial institution to have its shares dual-listed on London Stock exchange and, of course, the NGX, with our friends here from the Nigeria Stock Exchange here today.”

He added, “And, of course, between those dates, you’ve continued to absolutely transform the proposition from GTBank, a Nigeria-only bank, to now a financing powerhouse operating across the continent, living up to the motto of a truly international and most certainly proudly African.

“I thought your video today was absolutely fantastic, and highlights the integral role you play in economies, but more importantly to actually people’s everyday lives.

“Congratulations for turning the London Stock Exchange orange, not just with your physical assets, by the way, and look at the greats and logos all around the building but also with your orange values that shone through in that video, and the values that we wholeheartedly share here at the London Stock Exchange.

“Fantastic to see you reconfirm your place amongst the broad group of issuers from Africa on our markets. As you all know, we have over 100 African companies on our market, in our ecosystem, worth $110 billion. And as I say, you’ve been blazing a trail for many years, albeit now in a slightly different format with the dual listing.

“We really look forward to continuing that partnership and continuing to support you on what I know is going to be an exciting next chapter for the institution.”

Chief Executive Officer of NGX, Jude Chiemeka, commended GTCO, stressing that its listing on LSE will improve liquidity for both retail and international investors.

Chiemeka said, “From a governance perspective, I think GTCo has demonstrated a strong governance structure.  Even as a listed entity on the NGX, you see that a lot of internationals buy their shares because of the heightened level of corporate governance the company undergoes.

“And now that they are listed on the London Stock Exchange, we see it as a good thing, in terms of the level of governance that will go through here. But beyond that, we think it will also help create more liquidity for the shares that we have.”

He also said, “As you are aware, we have an MOU with London Stock Exchange, so this is not the first company to undergo this sort of arrangement. We have Seplat, we have Airtel. You can see the level of liquidity those companies continue to enjoy. 

“So, it’s a good thing. We congratulate GTCO for taking this initiative to list on the London Stock Exchange. We believe that it will help also position them to be able to attract more international capital, which is, at the end of the day, the essence of exchange listing.

“We also think it will help improve liquidity, not just for international institutional investors, but being listed on the LSE, we expect them to also have access to retail investors on the LSE.

“You will recall that they had done a GDR that led to the metamorphosis of this initiative. So, we think that from the MOU we have London Stock Exchange, we are beginning to see the benefits of such interaction.”

Managing Director, Capital Markets, Chaple Hill Denham, Mr. Lanre Buluro, said the listing was transformational for Nigeria’s capital market.

Buluro thanked GTCO for giving Chaple Hill Denham the opportunity to serve as the Nigerian Financial Adviser on the capital raise and listing on the LSE.