Access Holdings Plc Launches N351 Billion Rights Issue, Offering 17.8 Billion Shares at N19.75 Each
Access Holdings Plc has initiated its N351 billion rights issue, opening subscription on Monday. The launch follows the approval from the Securities and Exchange Commission (SEC) for the rights issue, which offers 17,772,612,811 ordinary shares of N0.50 each at a price of N19.75 per share.
The rights issue will be available on the basis of one new ordinary share for every two existing ordinary shares held as of Friday, June 7, 2024. The subscription period will last for five weeks, closing on Wednesday, August 14, 2024.
Access Holdings highlighted that this move is a crucial part of its capital raising program aimed at generating up to $1.5 billion. The rights issue is designed to strengthen the financial position of Access Holdings, support working capital needs, and fund organic growth across its banking and non-banking subsidiaries.
Acting Group Chief Executive Officer of Access Holdings Plc, Bolaji Agbede, emphasized the strategic importance of the rights issue, stating, “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. This execution is pivotal in propelling us towards our goal of becoming one of the top five financial institutions in Africa by 2027.”
Agbede further noted that the additional capital would enable Access Holdings to maximize emerging opportunities and deliver long-term value to shareholders.
The lead issuing house for the rights issue is Chapel Hill Denham Advisory Limited, with Atlas Registrars Limited serving as the registrars to the offer. Shareholders are advised to contact their stockbrokers for more details about the offer.
Access Holdings reiterated its commitment to expanding its footprint and delivering exceptional value to stakeholders. The successful execution of the rights issue is expected to solidify the group’s position as a leading financial services provider in Africa and beyond.
Currently operating in 22 countries worldwide, with 15 in Africa, Access Holdings has established itself as one of the continent’s most trusted financial institutions over the past 20 years. For the year ending December 31, 2023, the Group reported a 335 percent increase in pre-tax profit to N729 billion and an 87 percent surge in gross earnings to N2.59 trillion. Shareholders received a final dividend of N1.80 kobo per every N0.50 kobo ordinary share for the 2023 financial year, representing a 28 percent increase from the previous year.
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