Access Holdings Commences N351bn Rights Issue To Strengthen Financial Position

Access Holdings Plc has opened subscription for its  N351 billion rights issue on Monday.

This followed the  approval it secured  from the Securities and Exchange Commission (SEC) for the commencement of the rights issue.

Access, which is one of Africa’s leading financial services groups, noted that  the approved  rights issue offers 17,772,612,811 ordinary shares of N0.50 each at a price of N19.75 per share to investors.

The offer will be issued on the basis of one new ordinary share for every two  existing ordinary shares held as of Friday, June 7, 2024, the bank said.

The offer for subscription will be for a period of five weeks and  close on Wednesday, August 14, 2024.

Access Holdings stated that this marks a significant milestone in the group’s previously announced capital raising programme, which aims to generate up to $1.5 billion.

The rights issue, it pointed out, is strategically structured to bolster Access Holdings’ financial position, and support ongoing working capital needs, adding that, it will also provide funding for organic growth across its banking and non-banking subsidiaries.

Acting Group Chief Executive Officer of Access Holdings Plc,  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. However, 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. We are confident that this exercise will solidify our position as a market leader and drive sustainable growth for years to come.”

At a recent signing ceremony, Agbede in a statement, disclosed that: “The Rights Issue is a significant step in delivering our 2023-2027 strategic plan. The additional capital will enable us to maximise emerging opportunities and deliver long-term value to our shareholders.”

The lead issuing house for Access Holdings’ rights issue is Chapel Hill Denham Advisory Limited, while Atlas Registrars Limited will serve as the registrars to the offer.

“Shareholders are advised to contact their stockbrokers for more details about the offer,” the bank added in the statement.

Access Holdings added that it remains committed to its strategic vision of expanding its footprint and delivering exceptional value to all its stakeholders.

“The successful execution of this rights issue will further solidify the group’s position as a leading financial services provider in Africa and beyond,” the bank added in the statement.

Now operational in 22 countries across the globe, with 15 in Africa, Access Holdings has established itself as one of the continent’s most trusted performers over the last 20 years. The Group reported robust financial results for the year ending December 31, 2023, with a 335 per cent increase in pre-tax profit to N729 billion and an 87 per cent surge in gross earnings to N2.59 trillion. A final dividend of N1.80 kobo per every N0.50 kobo ordinary share for the 2023 financial year, was paid to shareholders, representing a 28 per cent increase from the previous year.

Kayode Tokede

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