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Access Holdings initiates N351bn rights issue to strengthen financial position
Access Holdings Plc opened subscription for its N351 billion rights issue on Monday.
This followed approval obtained from the Securities and Exchange Commission (SEC) to commence the rights issue.
Access, one of Africa’s leading financial services groups, noted that the approved rights issue offers 17,772,612,811 ordinary shares of N0.50 each at a price of N19.75 per share to investors.
The offering will be issued on the basis of one new ordinary share for every two existing ordinary shares held as of Friday, June 7, 2024, the bank said.
The subscription offer will be for a period of five weeks and will end on Wednesday, August 14, 2024.
Access Holdings said this marks a significant milestone in the group’s previously announced capital raising program, which aims to generate up to $1.5 billion.
The rights issue, he highlighted, is strategically structured to strengthen Access Holdings’ financial position and support ongoing working capital needs, adding that it will also provide funding for organic growth in its banking and non-banking subsidiaries.
Acting Group Chief Executive Officer of Access Holdings Plc, Bolaji Agbede, stated, “The commencement of the subscription of the Rights Issue is an important step in our growth strategy and capital raising plans, reinforcing our financial strength and accelerating our strategic ambitions. However, this execution is more than a capital raising; it is a fundamental process that will propel us towards our goal of becoming one of the top five financial institutions in Africa by 2027. We are confident that this exercise will solidify our position as a market leader and drive sustainable growth in the years ahead.”
At a recent signing ceremony, Agbede, in a statement, revealed that: “The Rights Issue is a significant step in delivering our 2023-2027 strategic plan. The additional capital will enable us to maximize emerging opportunities and deliver long-term value to our shareholders.”
The lead issuer of the Access Holdings rights issue is Chapel Hill Denham Advisory Limited, while Atlas Registrars Limited will act as registrar for the offering.
“Shareholders are advised to contact their brokers for further details on the offer,” the bank added in the statement.
Access Holdings added that it remains committed to its strategic vision of expanding its footprint and delivering exceptional value to all its stakeholders.
“The successful execution of this rights issue will further solidify the group’s position as a leading financial services provider in Africa and beyond,” the bank added in the statement.
Now operating in 22 countries around the world, with 15 in Africa, Access Holdings has established itself as one of the continent’s most trusted companies over the past 20 years. The Group reported robust financial results for the year ended December 31, 2023, with a 335 percent increase in profit before tax to N729 billion and an 87 percent increase in pre-tax profits to N2.59 trillion. A final dividend of N1.80 kobo for each N0.50 kobo ordinary share for the 2023 financial year was paid to shareholders, representing a 28 percent increase from the previous year.
Kayode Tokede
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