Victor Ezeja
Access Holdings Plc will on on Monday, 8 July 2024, begin its N351 billion capital raise through rights issue to shareholders.
Prime Business Africa reports that the move is to increase the capital base of Access Bank in line with the Central Bank of Nigeria (CBN) recapitalisation policy.
Join our WhatsApp ChannelThe CBN policy, announced in March, requires banks to raise their capital base depending on licence category. Commercial banks like Access under international category are required to raise their capital base to a minimum of ₦500 billion, while the minimum capital requirements for national and regional licence holders were pegged at ₦200 billion and ₦50 billion, respectively.
According to its audited financial statement for 2023, Access Bank has a capital base of N251.81 billion. This means it requires additional ₦248.19 billion to meet the minimum capital requirement for the international banking licence it holds.
Access Holdings rights issue will open on Monday, 8th July and close on Thursday, 8th August 2024, Prime Business Africa reports.
Access Holdings’ shareholders had at its 2nd Annual General Meeting (AGM) on Friday, 19th April, approved the plan to embark on a capital raising of about $1.5 billion as well as the subset initiative to raise capital through a Rights Issue of ordinary shares to its shareholders.
The company said in a statement that the capital raised through the rights issue will be used to enhance its working capital requirements, and this includes organic growth funding for its banking and non-banking subsidiaries.
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Speaking at the signing ceremony of the rights issue on Tuesday, 2nd July at Access Tower, the corporate office of Access Holdings in Lagos, Chairman, Aigboje Aig-Imoukhuede, said the financial institution will offer 17.77 billion new ordinary shares to existing shareholders at N19.75 kobo per share.
On the decision of the bank to offer only rights issue instead of combining with public offer, Aig-Imoukhuede said it is aimed at protecting the retail shareholders from dilution. He explained that it is their commitment to a pledge to always carry existing shareholders along.
“In 2002 when we took over Access Bank, we had promised the existing shareholders that they would always be carried along as we grow. This rights issue is one example of our commitment to that pledge,” Aig-Imoukhuede said.
“Access Holdings’ shareholders had at its 2nd annual general meeting (AGM), which held on Friday, April 19, 2024, unanimously backed its plan to execute a capital raising programme of about US$1.5 billion as well as the subset initiative to raise capital through a Rights Issue of ordinary shares to its shareholders,” the company said in the statement.
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“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 on the basis of 1 (one) new ordinary share for every 2 (two) existing ordinary shares held as of Friday, June 7, 2024,” the statement added.
Commenting on the capital raise programme, Acting Group Chief Executive Officer (GCEO) of Access Holdings, Bolaji Agbede, said: “The Rights Issue is a significant step in delivering our 2023-2027 strategic plan.”
According to her, the additional capital will enable the company “to maximise emerging opportunities and deliver long-term value to our shareholders.’’
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.
The company advised its shareholders to consult their stockbroker, fund and portfolio manager, accountant, banker, solicitor, or any other professional adviser for guidance before subscribing in case of any uncertainties.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
