With SEC’s Approval, Access Holdings Commenced It’s N351 Billion Rights Issue, Capital Raising
The Oasis Reporters
July 8, 2024
It all started with this announcement: “Access Holdings Plc (‘the Company’) is pleased to notify its esteemed shareholders and the Nigerian Exchange Limited (‘the Exchange’) that the Company has obtained the approval of the Securities and Exchange Commission (‘the Commission’) to execute a Rights Issue of 17,772,612,811 Ordinary Shares of N0. 50 each at N19”, and the offer excitingly commenced.
Aigboje Aig-Imoukhuede, the Chairman of Access Holdings Plc, on July 3 said the company will utilise the N351 billion raised through rights issue to fund banking and fintech businesses.
In a statement on Sunday, Access Holdings said the approval by the SEC marked a significant milestone in its previously announced capital raising programme, which aimed to generate up to $1.5 billion.
According to the statement, the rights issue was strategically structured to boost Access Holdings’ financial position and support ongoing working capital needs that includes it’s organic growth funding for its banking and non-banking subsidiaries.
Acting Group Chief Executive Officer of Access Holdings, Bolaji Agbede stated that “the commencement of the rights issue subscription is an important step in our growth strategy and capital raising plans, reinforcing our financial strength and accelerating our strategic ambitions.”
She noted this execution is more than a capital raise; it is a pivotal process that will propel us towards our goal of becoming one of the top five financial institutions in Africa by 2027.
According to Agbede, we are confident that this exercise will solidify our position as a market leader and drive sustainable growth for years to come.
Access Holdings’ rights issue offers 17.773 billion ordinary shares of N0.50 each at N19.75 per share. The offer will be issued on the basis of one new ordinary share for every two existing ordinary shares held as of June 7, 2024.
We had reported in September 2023 that Access Holdings H1 2023 revealed a 58% jump in Gross Earnings to N940Bn With $180 Million (₦137.73Bn) In Profit Before Tax.
(180 Million USD to NGN was worth ₦137,730,135,600.00 (NGN) then.
Access Holdings is the parent company of Access Bank with subsidiaries in Nigeria and several countries.
Access Holdings Plc had reported gross earnings of N940.311 billion in the first six months of 2023, which represented a 58% increase when compared to N591.80 billion earnings reported in the same period in 2022.
The lead issuing house for the Rights Issue is Chapel Hill Denham Advisory Limited. Atlas Registrars Limited will serve as Registrars to the Offer.
Access Holdings Plc is a leading multinational financial services group that offers commercial banking, lending, payment, insurance, and asset management services.
Established in 2022, Access Holdings Plc consists of the Access Bank Group; Access Pensions; a Payment and Switching Services Company; a Digital Lending Company, and an Insurance Brokerage Company.
