The Nigerian Exchange Group Limited (NGX) has temporarily suspended the trading of GTB shares ahead of its imminent listing as a holding company, naijabusiness.com.ng can authoritatively confirm.
The recent disclosure is contained in a bulletin issued by NGX on Friday and signed by the head of listings regulation department, Godstime Iwenekhai.
Naijabusiness.com.ng understands that the suspension in the trading of the firm’s shares is one of the pre-requisite conditions needed to effect the change in the bank’s status as a holding company. In line with the statutory requirements, GT Bank Plc will be delisted from the daily official list of the NGX and the London Stock Exchange, and subsequently registered as a private limited liability company. The firm’s name will thereafter change to Guaranty Trust Holding Company Plc on its trading platforms.
Commenting on the recent development, Iwenekhai said: “Trading License Holders and the investing public are hereby notified that trading in the shares of Guaranty Trust Bank Plc (the Bank) was suspended today, Friday, 18 June 2021.
“The suspension is necessary to prevent trading in the shares of the Bank in preparation for the eventual delisting of Guaranty Trust Bank Plc from the Daily Official List of the Nigerian Exchange Limited (NGX) and listing of the Holding Company, Guaranty Trust Holding Company Plc on NGX.”
READ: How to Apply for Guaranty Trust Bank – GTBank Quick Credit Loan
What you need to know about the holding company status of the bank.
Naijabusiness.com.ng gathered that if successfully implemented, GTB will be the fourth Nigerian bank to acquire a holding status. It will join the likes of First Bank, Access, Stanbic and FCMB.
With its new status as a holding company, the bank will be able to diversify into other allied businesses like asset management, insurance, payment service and even pension management.
It is imperative to note that the recent development is of immense benefits to shareholders and the bank itself. This is because the valuation of the bank is expected to increase in coming days, indicating a potential rise in the firm’s share price and investors’ sentiments. Additionally, with the potential to diversify its business due to the HoldCo status, it is naturally anticipated that the recent development have the potentials to grow the revenue of the company, create more jobs and further consolidate the financial landscape.
Back story: Recall that in November of 2020, GTBank announced that it had obtained regulatory approval-in-principle (AIP) to restructure into a financial holding company (Holdco). This was subsequently followed by shareholders’ approval a month later. In the same vein, investors approved the transfer of 29,431,179,224 ordinary shares of 50 kobo each in the issued and paid-up share capital of the bank held by them to Guaranty Trust Holding Company Plc.
