One of Africa’s leading financial services groups, Access Holdings Plc, has announced the commencement of its N351 billion capital raising through a rights issue otherwise called an offer for subscription.
The offer, which opened for subscription on Monday, July 8, will close on Wednesday, August 14, 2024.
The lender said that it’s now focused on positioning itself among the top financial institutions in Africa.
“A subset of the group’s capital raising programme aiming to generate up to US$1.5 billion, the Rights Issue is designed to strengthen the Group’s financial footing and support ongoing working capital needs, including organic growth funding for its banking and non-banking subsidiaries.
“Access Holdings Plc (‘the Company’) is pleased to notify its esteemed shareholders and the Nigerian Exchange Limited (‘the Exchange’) that the Company has obtained the approval the Securities and Exchange Commission (‘the Commission’) to execute a Rights Issue of 17,772,612,811 Ordinary Shares of N0.50 each at N19.75 per share, on the basis of 1 Ordinary Share for every 2 Ordinary Shares held as at June 7, 2024”, Access Holdings said.
Head of Media and Public Relations, Access Holdings Plc, Olakunle Aderinokun, said in a statement sent to PUNCH Online on Monday that the capital raising was necessary for the group to maintain its top position in the financial services sector.
The statement quoted the Acting Group Chief Executive Officer of Access Holdings Plc, Bolaji Agbede, as saying the offer for subscription will further expand the group’s growth strategies and financial strength.
We are confident that this exercise will solidify our position as a market leader and drive sustainable growth for years to come. Access Holdings’ Rights Issue offers 17,772,612,811 ordinary shares of N0.50 each at N19.75 per share.
“The Offer will be issued based on one (1) new ordinary share for every two (2) existing ordinary shares held as of Friday, 7 June 2024,” Agbede said.
The lead issuing house for the Rights Issue is Chapel Hill Denham Advisory Limited. Atlas Registrars Limited will serve as Registrars to the Offer.
Now operational in 22 countries across the globe, with 15 in Africa, Access Holdings has established itself as one of the continent’s most trusted performers over the last 20 years.
The Group reported robust financial results for the year ending December 31, 2023, with a 335 per cent increase in pre-tax profit to N729 billion and an 87 per cent surge in gross earnings to N2.59 trillion.
A final dividend of N1.80 kobo per every N0.50 kobo ordinary share for the 2023 financial year was paid to shareholders, representing a 28 per cent increase from the previous year.
