GTCO to replace its global depositary receipts with shares on London Stock Exchange

Guaranty Trust Holding Company Plc (GTCO) says it will cancel the listing of its global depositary receipts (GDRs) on the London Stock Exchange (LSE) by July 31, 2025 and replace them with its ordinary shares.

GDRs are financial instruments or certificates that represent shares in a foreign company and are traded on international stock exchanges.

A GDR allows investors to buy shares in a foreign company without dealing with the complexities of cross-border and currency transactions.

The announcement was made in a notice signed by Erhi Obebeduo, group general counsel and company secretary, and released on Thursday.

GTCO said the planned delisting complies with UK Listing Rule 21.2.17R, which mandates at least 20 business days’ notice ahead of any cancellation.

According to the notice, the decision to delist the GDRs is due to low trading volumes on the LSE’s main market.

“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 statement reads.

“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.”

ORDINARY SHARES TO REPLACE GDRs

The company said it plans to apply to the UK Financial Conduct Authority (FCA) for its ordinary shares to be included in the equity shares category for international commercial companies under a secondary listing on the FCA’s official list.

GTCO added that it intends to have the shares admitted for trading on the LSE’s main market.

“It is expected that dealings in the Shares will commence on the day of Admission, which, subject lo the satisfaction of certain conditions, is expected to be at 8.00 a.m. (London time) on or around July 9, 2025,” the company said.

“The company believes that investors in the company will benefit from the Shares trading on the London Stock Exchange and that these will enjoy greater liquidity than the GDRs.”

GTCO said it is seeking to amend the listing of its securities on the London Stock Exchange from GDRs to shares.

The company said such an amendment of the listing of its securities may make it easier for the company to raise capital internationally in the future, should it need to.

The notice said that following the delisting, the company’s depositary will work to make the GDRs ineligible in the current settlement systems.

GTCO said once the GDRs are no longer eligible, the depositary will cancel all outstanding certificates and transfer the shares represented by outstanding GDRs, along with a copy of the GDR register, to the company.

Upon receiving the shares, GTCO said it will make every effort to provide each individual listed on the register with the necessary documents to facilitate the transfer of the shares that were previously represented by their GDRs.