How Access Holdings’ Rights Issue Benefits Investors Strategically

How Access Holdings’ Rights Issue Benefits Investors Strategically

On March 28, 2024, the Central Bank of Nigeria (CBN) announced a two-year bank recapitalization exercise, beginning April 1, 2024, and concluding March 31, 2026. In response, Access Holdings Plc, a leading financial institution in Nigeria, revealed plans to raise N351 billion through a rights issue…… CONTINUE READING 

The company aims to raise a total of $1.5 billion through a mix of equity, quasi-equity, and debt issuances. The rights issue will involve offering 17.772 billion ordinary shares at N19.75 each to existing shareholders, starting July 8, 2024.

Originally set to close on August 14, 2024, the offer period has been extended to August 23, 2024, following approval from the Securities & Exchange Commission (SEC). The extension was made in light of recent nationwide protests affecting business operations.

The funds raised will strengthen Access Holdings’ capital base, supporting its expansion and ability to capitalize on new opportunities. The proceeds will be allocated to working capital and growth funding for both banking and non-banking subsidiaries.

The rights issue will increase Access Holdings’ issued share capital from N17.77 billion to N26.66 billion, with new shares priced at 50 kobo each. Shareholders can purchase one share for every two they currently hold.

The CBN’s recapitalization plan mandates minimum capital requirements for various types of banks and financial institutions. Banks have the option to raise capital through private placements or rights issues.

Shareholder associations have expressed strong support for the rights issue, citing Access Holdings’ track record of success and profitability. They believe the capital raising exercise will significantly enhance the bank’s growth and value for shareholders.

Access Holdings’ Chairman, Aigboje Aig-Imoukhuede, emphasized that the rights issue reflects the group’s commitment to its shareholders and will enable the company to maximize emerging opportunities. The bank is also focusing on bridging infrastructure gaps and expanding its presence in Africa and globally, with plans to enhance its digital platforms and strategic partnerships.

Managing Director Roosevelt Ogbonna highlighted the bank’s growth strategy, including its merger with Diamond Bank and future plans to establish a presence in at least 26 countries by 2027. The bank aims to leverage partnerships and innovations to expand cross-border money solutions and enhance financial services across the continent.

For the latest updates and juicy gossip, dive into the Bushradiogist platform by clicking this link: Bushradio. For advert placement only, shoot a WhatsApp message to 0807 580 6790.