Aigboje Aig-Imoukhuede, chairman of Access Holdings Plc, announced that the company will use the N351 billion raised through a rights issue to support its banking and fintech operations.
Speaking at the rights issue signing ceremony held on Tuesday at Access Tower, the corporate headquarters of Access Holdings in Lagos, Aig-Imoukhuede highlighted that the 17.77 billion new ordinary shares, offered to existing shareholders at N19.75 per share, demonstrate the company’s inclusive approach.
The capital infusion into Access Bank aligns with the Central Bank of Nigeria’s (CBN) mandate for banks to increase their capital base. On March 29, CBN revised the minimum capital requirements for various categories of banks, setting N500 billion for commercial banks with international licenses, N200 billion for national license holders, and N50 billion for regional license holders. Given Access Bank’s current capital base of N251.81 billion, it needs an additional N248.19 billion to meet the new requirement for international license holders.
In a statement released on Tuesday, Access Holdings indicated that the capital raised would support organic growth for both its banking and non-banking subsidiaries. At its second annual general meeting (AGM) on April 19, 2024, shareholders unanimously endorsed the plan to raise approximately US$1.5 billion, which includes the rights issue of ordinary shares.
The rights issue offers 17,772,612,811 ordinary shares of N0.50 each at N19.75 per share on a 1-for-2 basis to shareholders as of June 7, 2024.
Bolaji Agbede, acting group chief executive officer (GCEO) of Access Holdings, described the rights issue as a crucial element in the company’s 2023-2027 strategic plan. Agbede stated, “The additional capital will enable us to maximize emerging opportunities and deliver long-term value to our shareholders.”
Access Holdings plans to open the application for the rights issue on July 8, pending approval from the Securities and Exchange Commission (SEC), and close it on August 8. The rights issue circular, including a provisional allotment letter and participation form, will be sent directly to shareholders.
The company advised shareholders to seek guidance from their stockbroker, fund manager, accountant, banker, solicitor, or other professional advisers before subscribing. Chapel Hill Denham is the lead issuing house, with Atlas Registrars Limited serving as the registrar for the exercise.
