Access Holdings Plc will open its 17,772,612,811 ordinary share rights issue to existing shareholders on Monday, July 8, 2024. The announcement was made during a signing ceremony held at the corporate headquarters of Access Holdings in Lagos.
Group Managing Director Mrs. Bolaji Agbeje emphasized that the rights issue is a strategic move designed to create value for shareholders and ensure the group’s sustained growth. “Our success is rooted in our resolute dedication to excellence, our strategic vision, market research, resilience, and ability to adapt to the ever-evolving financial landscape. With this ceremony, we are taking a bold step in our vision to build a connected community and ecosystem inspired by Africa for the world,” Agbeje said.
She further highlighted the importance of shareholder support in realizing this vision, noting that the rights issue is a critical component of the group’s 2023-2027 strategic plan. The issue will be offered at N19.75 per share on the basis of one new share for every two shares held as of June 7, 2024. “We appreciate your continued trust and support and look forward to your full participation when the offer opens on Monday, July 8, 2024,” she added.
The rights issue is also a step toward meeting the Central Bank of Nigeria’s new N500 billion capital base requirement for top commercial banks, with a recapitalization deadline set for March 31, 2026.
Group Chairman Aigboje Aig-Imoukhuede noted the significance of this being the second rights issue by Access Corporation, the first having occurred in 2002. Reflecting on the timing of the capital raising steps coinciding with the Central Bank’s announcement, he remarked, “It speaks to our strategic intent and enables early compliance with the Central Bank’s overall recapitalization of our sector. The proceeds will be used to support our noble intention to fly the Access Bank flag across Africa and beyond, and will be deployed in line with our formidable rolled-out programs.”
The funds raised will also support the group’s non-banking business, including pensions and fintech. Aig-Imoukhuede stressed the inclusivity of the capital raise, offering the new shares to existing shareholders to ensure that everyone benefits from the long-term value opportunities that Access stock presents.
Managing Director of Access Bank, Roosevelt Ogbonna, highlighted that rights issues and public offers test the bank’s collective resolve. “Every time we have been put to that test, we have passed with flying colors. It is an opportunity for us to bind together as a board and, more importantly, as a stakeholder group,” Ogbonna stated.
He also noted that the last rights issue 22 years ago was oversubscribed. “We are now the largest bank in our market, among the top 10 banks in Africa, and the first African bank in Hong Kong and Malta, among other achievements,” he declared.
