Prime Business Africa
Shareholders of Guaranty Trust Holding Company (GTCO) gained N93.87 billion within five hours of trading on Thursday, July 3, after the company announced plans to list on the London Stock Exchange (LSE).
Prior to the announcement, GTCO’s share value had been on a free fall since it hit a peak on June 20, when it closed trading at N84.95 kobo – the highest this year.
Join our WhatsApp ChannelBetween June 20 and July 2, the company’s share price had plunged by 5.82 percent, as profit-takers dumped the shares, resulting in the share price declining by N4.95 kobo to N80 per share.
However, following the announcement earlier today, GTCO’s share price increased by N2.75 kobo, taking back about half of what was lost in about weeks, according to Prime Business Africa’s analysis.
While this resulted in a 3.43 percent increase in shareholders’ investment value, it also raised GTCO’s market valuation to N2.82 trillion as of July 3, from N2.73 billion on Wednesday, July 2.
The share price had appreciated as GTCO plans to list on the London Stock Exchange on July 9 and delist its global depositary receipts (GDRs) on the LSE by July 31.
In a statement earlier today, GTCO said it is replacing the GDRs with shares due to low demand for the GDRs, which are certificates representing shares in a foreign company and are traded on international stock exchanges.
“In accordance with UK Listing Rule 21.2.17R, the Company hereby gives notice of its intention to cancel the listing of the GDRs on the certificates representing certain securities (depositary receipts) category of the Official List of the United Kingdom Financial Conduct Authority (“FCA”) and the admission to trading of the GDRs on the London Stock Exchange’s main market for listed securities (the “ISE Delisting”),” the company said..
“Pursuant to UK Listing Rule 21.2.17R, the Company is required to give at least 20 business days’ notice (the “Notice Period” of the intended cancellation of listing of the GDRs. Accordingly, such cancellation is expected to occur by no later than July 31, 2025, such that the last date of trading of the GDRs on the LSE will be July 30, 2025.
“Following the LSE Delisting, it will no longer be possible to trade the GDRs on the London Stock Exchange.
“By way of background, the GDRs have been admitted to trading on the Main Market of the London Stock Exchange since 1 July 2021.”
GTCO said replacing the GDRs with shares will enable the company to raise capital from the London Stock Exchange.
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