Access Holdings Plc has received approval from the Securities and Exchange Commission (SEC) to proceed with its N351 billion rights issue capital raising programme.
The approval, disclosed in a statement released by Access Holdings on Sunday, confirms the commencement of the capital raise, which aims to generate up to $1.5 billion.
The rights issue is designed to offer 17,772,612,811 ordinary shares at N0.50 each, priced at N19.75 per share, on the basis of one new ordinary share for every two existing shares held as of June 7, 2024.
The offer is set to open on July 8 and close on August 14.
The capital raised from this programme is strategically planned to bolster Access Holdings’ financial health, provide working capital, and fund organic growth across its banking and non-banking subsidiaries.
This move aligns with the group’s vision of expanding its footprint and delivering exceptional value to its stakeholders.
Karl Toriola, Chief Executive Officer of Access Holdings, expressed his satisfaction with the SEC’s approval, stating, “This rights issue is a critical step in our ongoing efforts to strengthen our balance sheet and support our growth strategy. It underscores our commitment to maintaining financial stability while continuing to invest in our business and deliver value to our shareholders.”
The lead issuing house for the rights issue is Chapel Hill Denham Advisory Ltd., with Atlas Registrars Ltd. serving as the registrar to the offer.
The rights circular will be distributed to shareholders by Atlas Registrars, and application forms will be available on its various websites. Shareholders are advised to contact their stockbrokers for more details about the offer.
The approval of the rights issue is a testament to Access Holdings’ resilience and strategic vision. As the group navigates the complexities of the financial landscape, the successful execution of this capital raise will further solidify its position as a leading financial services provider in Africa and beyond.
Former President Olusegun Obasanjo, represented by former Cross River Governor Donald Duke at the event, called for synergy between fiscal and monetary policies to revolutionize the banking industry and achieve economic stability.
He praised Anambra State Governor and former CBN Governor Professor Chukwuma Soludo for his courageous banking sector consolidation in 2005,