Access Holdings Plc is set to launch a significant capital raising effort, opening its rights issue of 17,772,612,811 ordinary shares to existing shareholders starting Monday, July 8, 2024.
During the signing ceremony held at the corporate headquarters of Access Holdings in Lagos, Group Managing Director Mrs. Bolaji Agbeje emphasized the importance of the rights issue for creating value and fostering sustained growth for the company. “Our success is rooted in our dedication to excellence, strategic vision, market research, and resilience,” Agbeje said. She highlighted that this step is part of their vision to build a connected community and ecosystem inspired by Africa.
The rights issue is priced at N19.75 per share, offered on a one-for-two basis to shareholders as of June 7, 2024. Agbeje expressed confidence that the offer would be well-received, appreciating the shareholders’ continued trust and support.
This capital raise is part of Access Holdings’ strategy to meet the Central Bank of Nigeria’s (CBN) new capital base requirement of N500 billion for top commercial banks, with a compliance deadline set for March 31, 2026. The initiative aligns with the company’s 2023-2027 strategic plan and aims to ensure early compliance with the CBN’s recapitalization mandate.
Aigboje Aig-Imoukhuede, Chairman of Access Holdings, noted the significance of this being the second rights issue by the corporation, the first having taken place in 2002. He reflected on the strategic timing of their capital raising steps, coinciding with the CBN’s recapitalization announcement. “Our steps were not driven solely by regulatory requirements. The proceeds will support our ambitions to extend Access Bank’s reach across Africa and beyond,” he said.
The raised funds will also support Access Holdings’ non-banking ventures, including pension and fintech operations. “Offering 17,772,612,811 new ordinary shares to our existing shareholders ensures inclusivity, allowing everyone to benefit from the long-term value opportunities in Access stock,” Aig-Imoukhuede added.
Roosevelt Ogbonna, Managing Director of Access Bank, emphasized the bank’s consistent success in capital raising efforts, noting that their last rights issue 22 years ago was oversubscribed. He highlighted Access Bank’s prominent market position, being the largest bank in Nigeria and among the top 10 in Africa, with significant presence in global financial hubs like Hong Kong, Malta, and Dubai.
The rights issue marks a pivotal moment for Access Holdings, as the company continues to solidify its position as a leading financial institution in Africa and beyond.
