Access Holdings Plans to Raise N351bn through Rights Issue

Access Holdings Plc Tuesday held a formal signing ceremony as part of the arrangements to raise a total of N351.009 billion by way of a rights issue to existing shareholders.

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

Subject to approval of the Securities and Exchange Commission (SEC), the Acceptance and Application Lists for the rights issue are expected to open on July 8, 2024, and close on August 8, 2024.

The Signing Ceremony with respect to the offer was held in Lagos, this is Access Holdings’ shareholders had at its second Annual General Meeting (AGM), which held on April 19, 2024, 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, 17.773 billion ordinary shares of N0.50 each at N19.75 per share on the basis of one new ordinary share for every two existing ordinary shares held as of June 7, 2024.

At the signing ceremony, acting managing director/chief executive officer of Access Holdings, 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.”

Chapel Hill Denham is the lead issuing house to the offer, while Atlas Registrars Limited will serve as registrars through the exercise.

The Joint Issuing Houses are Coronation Merchant Bank, Stanbic IBTC Capital, Vetiva Advisory Services, Greenwich Merchant Bank, FCSL, First Ally Capital, FCMB Capital, Renaissance Capital Africa and Meristem Capital.

Other parties to the offer are Coronation Merchant Bank, Coronation Securities, Chapel Hill Denham Securities Limited, FSDH Capital, Cordros Capital, Cowry Securities, First Integrated Capital Management Limited, Network Capital Limited, CSL Stockbrokers Limited, Compass Investment & Securities Limited, PAC Securities Limited, Dynamic Portfolio, Chartwell Securities Limited, Tiddo Securities Limited, and Futureview Securities Limited.

Established in 2022, Access Holdings Plc consists of the Access Bank Group; Access Pensions; a Payment and Switching Services Company; a Digital Lending Company, and an Insurance Brokerage Company.