In furtherance of its expansion across and beyond the African continent, the Chairman of Access Holdings Plc, Aigboje Aig-Imoukhuede, has said that the company is set to raise N351 billion through a rights issue to fund its non-banking businesses, which include pension and fintech.
The chairman said this yesterday at the completion board meeting and signing ceremony held in Lagos, to commence its rights issue offer of 17.7 billion ordinary shares of 50 kobo each at N19.75 per share to its shareholders.
According to the bank, 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.
Remarking on the rights offer, 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 indicates that we don’t leave anybody behind in Access Bank.
“We felt that it was essential that all shareholders be carried along in the capital exercise and 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 and beyond Nigeria and fund its non-banking businesses including the pension and fintech businesses.
He said, “The proceeds will be used to support our very noble intentions to fly the Access Bank flag across and beyond the African continent. The capital will be deployed in line with our formidable expansion programme.
“We will also be using the funding for our non-banking business, namely the pension and fintech businesses.”
Remarking on the rights issue, the Managing Director/Chief Executive Officer of Access Bank Nigeria Limited, Roosevelt Ogbonna, said that the rights issue allows the company to reward shareholders for the faith they had in the company since the company did the first rights issue in 2002.
Recall that 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 based on 1 (one) new ordinary share for every 2 (two) existing ordinary shares held as of Friday, June 7, 2024.
On his part, the 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 plans. The additional capital will enable us to maximise emerging opportunities and deliver long-term value to our shareholders.”
According to the company, the acceptance and application lists for the rights issue are expected to open on July 8 and close on August 8, which is subject to the approval of the Securities and Exchange Commission (SEC).
The company said that 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.
It added that 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.
Access Holdings said Chapel Hill Denham is the lead issuing house to the offer, while Atlas Registrars Limited will serve as registrars throughout the exercise.