Access Holdings Launches N350 Billion Rights Issue for Shareholders

Access Holdings Plc is set to open its highly anticipated N350 billion rights issue to existing shareholders on Monday, July 8, 2024.

The strategic move was announced during a signing ceremony held at the corporate head office in Lagos on Tuesday, and it marks a significant milestone in the company’s ambitious growth plan.

At the ceremony, the Group Managing Director of Access Holdings, Mrs. Bolaji Agbeje, explained the importance of this rights issue for the company’s future.

“Our success is rooted in our resolute dedication to excellence, our strategic vision, market research, resilience, and ability to adapt to the ever-evolving financial landscape,” she stated.

“This rights issue will create real value for all and position the group for sustained growth for the future.”

The rights issue, priced at N19.75 per share, is offered on the basis of one new share for every two shares held as of June 7, 2024.

With 17,772,612,811 new ordinary shares available, Access Holdings aims to raise significant capital to support its strategic objectives outlined in the 2023-2027 plan.

Mrs. Agbeje emphasized the crucial role of shareholders in realizing the company’s vision.

She said “Indeed, the realisation of this vision requires the full backing of our valued shareholders. It is your support that ensures we optimize the emerging opportunities in the ecosystem and create long-term value.”

The funds raised will be instrumental in meeting the new N500 billion capital base mandated for top commercial banks in Nigeria, as per the Central Bank of Nigeria’s circular issued in April 2024. The deadline for recapitalization is set for March 31, 2026.

Mr. Aigboje Aig-Imoukhuede, Chairman of Access Holdings, said “This is the second rights issue by Access Corporation, the first being in 2002. Today, we are here for another significant corporate action in the life of the Access ecosystem. This is the first time we are bringing to the market an Access Bank financial instrument without Herbert being present, but his spirit and vision are very much a part of this offer.”

Aig-Imoukhuede noted that the capital raising steps were planned independently of the Central Bank’s announcement.

This, he said ” speaks to our strategic intent and enables early compliance with the Central Bank’s overall recapitalization of our sector. The proceeds will support our ambition to fly the Access Bank flag across Africa and beyond.”

Roosevelt Ogbonna, Managing Director of Access Bank, said “Every time we have been put to that test, we have passed in flying colours. The truth is that it is an opportunity for us to bind together as a board and, more importantly, as a stakeholder group.”

The funds raised will not only bolster the bank’s core operations but also support its non-banking ventures in pension and fintech sectors, reinforcing Access Holdings’ position as a leading financial services group in Africa.