Access Holdings Plc announced a formal signing ceremony to launch a rights issue, aiming to raise N351.01 billion from its existing shareholders.
This announcement, made in a statement on Wednesday in Lagos, comes ahead of the Central Bank of Nigeria’s (CBN) recapitalisation directive.
The News Agency of Nigeria (NAN) reported that on March 28, the CBN increased the minimum capital base for banks with international authorisation to N500 billion, effective March 31, 2026. The minimum capital for nationally authorised commercial banks was raised to N200 billion, and for regionally authorised banks to N50 billion. Merchant banks now require a minimum of N50 billion, while non-interest banks with national and regional authorisations must meet new minimums of N20 billion and N10 billion, respectively.
At its second Annual General Meeting (AGM) on April 19, shareholders unanimously supported a capital raising programme of about $1.5 billion, including a rights issue of ordinary shares.
The statement explained that the rights issue will involve 17.773 billion ordinary shares of 50k each at N19.75 per share, offered on the basis of one new share for every two existing shares held as of June 7. This initiative is part of the group’s strategy to enhance its working capital, supporting both its banking and non-banking subsidiaries.
Ms. Bolaji Agbede, Acting Managing Director, stated that the rights issue is essential for achieving the group’s 2023 to 2027 strategic plan. She highlighted that the additional capital will help seize emerging opportunities and deliver long-term value to shareholders.
Chapel Hill Denham is the Lead Issuing House, with Atlas Registrars Ltd. serving as registrars. The joint issuing houses include 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 participants are Coronation Securities, Chapel Hill Denham Securities Ltd., FSDH Capital, Cordros Capital, Cowry Securities, First Integrated Capital Management Ltd., Network Capital Ltd., CSL Stockbrokers Ltd., Compass Investment and Securities Ltd., PAC Securities Ltd., Dynamic Portfolio, Chartwell Securities Ltd., Tiddo Securities Ltd., and Futureview Securities Ltd.
Agbede mentioned that, subject to approval from 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. Shareholders will receive a rights circular with a provisional allotment letter and participation form, which can also be obtained at any Access Bank branch or the offices of the issuing houses during the application period.
Access Holdings Plc, established in 2022, is a multinational financial services group offering commercial banking, lending, payment, insurance, and asset management services. The group includes Access Bank Group, Access Pensions, a payment and switching services company, a digital lending company, and an insurance brokerage company.
