We Have Launched N351.01 Billion Rights Issue to Strengthen Capital Base – Access Holdings
Access Holdings Plc has initiated a significant financial maneuver aimed at bolstering its capital base by launching a rights issue to raise N351.01 billion from existing shareholders. The formal signing ceremony marked the commencement of this strategic initiative, which involves offering 17.773 billion ordinary shares at N19.75 per share. Shareholders will be able to purchase one new ordinary share for every two shares they currently hold as of June 7.
This recapitalisation effort aligns with the Central Bank of Nigeria’s (CBN) recent directive for banks to enhance their capital reserves. According to a statement from Access Holdings, the rights issue is a crucial component of the group’s broader strategy to secure working capital for its banking and non-banking subsidiaries, supporting both organic growth and operational stability.
Ms. Bolaji Agbede, Acting Managing Director of the bank, emphasized the importance of this initiative, stating, “The rights issue is a significant step in delivering Access Holdings’ 2023 to 2027 strategic plan.” Agbede noted that the additional capital will enable the firm to seize emerging opportunities and deliver sustained value to shareholders.
Chapel Hill Denham is the Lead Issuing House for the offer, with Atlas Registrars Ltd. managing registrar duties. The initiative also involves a consortium of joint issuing houses, including Coronation Merchant Bank, Stanbic IBTC Capital, Vetiva Advisory Services, and several others.
Pending approval from the Securities and Exchange Commission (SEC), the acceptance and application period for the rights issue is expected to open on July 8, 2024, and close on August 8, 2024. Shareholders will receive the rights circular, which includes a provisional allotment letter and participation form, by mail. Additionally, printed copies will be available at Access Bank branches and the offices of the issuing houses during the application period.
Ms. Agbede urged shareholders and potential investors to thoroughly review the Rights Circular and Prospectus and consult professional advisers if needed before subscribing to the offer.
This capital raise comes in response to the CBN’s March 28 directive, which mandates that banks with international authorisation must increase their minimum capital base to N500 billion by March 31, 2026. The directive also raised the minimum capital requirements for various other banking categories, ensuring the stability and resilience of Nigeria’s banking sector.
At its second Annual General Meeting (AGM) on April 19, Access Holdings’ shareholders unanimously supported the plan to raise approximately $1.5 billion, including the subset initiative to execute this rights issue.
Access Holdings Plc, established in 2022, is a multinational financial services group comprising Access Bank Group, Access Pensions, a payment and switching services company, a digital lending company, and an insurance brokerage company.
