Access Holdings commences N351bn ordinary shares offer to shareholders

cover, Financial Markets

Access Holdings yesterday commenced rights issue offer of 17.7 billion ordinary shares of 50 kobo each at N19.75 per share totalling N351 billion to its shareholders.

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The Offer is part of the Group’s strategy to enhance its working capital requirements, which include organic growth funding for its banking and non-banking subsidiaries.

Speaking at the completion board meeting and signing ceremony yesterday, Chairman Access Holdings, Aigboje Aig-Imoukhuede, said that the rights offer is to ensure no shareholder is left behind in its capital raising exercise.

He said, “We are offering 17.7 billion new ordinary shares to our existing shareholders. This is an indication that we don’t leave anybody behind in Access Bank.

“We felt that it was very necessary that all shareholders be carried along in the capital exercise and to benefit from long term value opportunities in the Access brand.”

He added that the proceeds of the offer will support the company’s intentions to fly the Access Bank flag across Nigeria and beyond Nigeria as well as fund its non banking businesses including the pension and fintech businesses
He said: “The proceeds will be used to support our very, very noble intentions to fly the Access Bank flag across Nigeria and beyond Nigeria. The capital will be deployed in line with our formidable expansion program.

“We will also be using the funding for our non-banking business, namely the pension and our fintech businesses.

Also speaking, Managing Director/Chief Executive, Access Bank Nigeria Limited, Mr. Roosevelt Ogbonna said that the rights issue gives the company the opportunity to reward shareholders for the faith they had in the company since the company did the first rights issue in 2002.

Access Holdings’ shareholders had at its 2nd Annual General Meeting (AGM), in April unanimously backed its plan to execute a Capital Raising Programme of about $1.5 billion as well as the subset initiative to raise capital through a Rights Issue of ordinary shares to its shareholders.

Under the Rights Issue, 17,772,612,811 (Seventeen billion, seven hundred and seventy-two million, six hundred and twelve thousand, eight hundred and eleven) ordinary shares of N0.50 each at N19.75 per share on the basis of 1 (one) new ordinary share for every 2 (two) existing ordinary shares held as of Friday, June 7, 2024.

Also speaking at the signing ceremony, Acting Managing Director/Chief Executive Officer of Access Holdings Plc, Bolaji Agbede, 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 company in a statement on details of the offer said: “Subject to approval of the Securities and Exchange Commission (SEC), the Acceptance and Application Lists for the Rights Issue are expected to open on Monday, July 8, 2024, and close on Thursday, August 8, 2024.

“The Rights Circular for the Issue, which contains a Provisional Allotment Letter and the Participation Form, will be mailed directly to shareholders of the Group. Printed copies of the Participation Form can also be obtained at any Access Bank branch and the offices of the Issuing Houses during the Offer Application Period.
“All existing shareholders and prospective investors are encouraged to read the Rights Circular and Prospectus and, where in doubt, consult their Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other professional adviser for guidance before subscribing.”