Access Holdings Announces N19.75 Rights Issue to Shareholders

Olufemi Adeyemi 

Access Holdings Plc, a financial services organization, has announced the commencement of its rights issue to shareholders. The company intends to sell 17.7 billion shares at a price of N19.75 per share. This announcement was made during a signing ceremony held in Lagos.

As per the group’s announcement, a rights issue is being offered on a one-for-two basis to ordinary shareholders registered as of Friday, June 7, 2024. During the official signing ceremony held at a board meeting in Lagos, Aigboje Aig-Imoukhuede, the group chairman, stated that the proceeds from this issuance will be strategically utilized to fuel the group’s expansion initiatives across Africa and beyond.

He mentioned that the fund will also be directed toward non-banking operations such as pensions and fintech, ensuring adherence to regulatory capital requirements. Aig-Imoukhuede highlighted in his speech that Access Holdings Plc has made significant progress in positioning itself as a prominent financial services provider with a presence across three continents and twenty-two countries, offering a diverse range of financial services encompassing banking, pensions, lending, payments, and insurance brokerage.

“With this ceremony, we are taking a bold step in our vision to build a connected community and ecosystem, inspired by Africa, for the world. Indeed, the realisation of this vision requires the full buy-in of our valued shareholders. It is your support that ensures that we continue to optimise the emerging opportunities in the ecosystem and create long-term value.”.

The Rights Issue, a crucial element of our 2023–2027 strategic plan, is now available to existing shareholders at N19.75 per share, as announced by the Access Group’s Chief Executive Officer.

The GMD group stated that this Rights issuance program will ensure Access Holdings Plc has the requisite capital buffers to endure economic shocks and seize growth opportunities as part of the strategic planning cycle. It will also fortify our balance sheet, furnishing a robust platform from which to propel our ambitious growth objective.

The ceremony serves as a testament to our collective determination and strategic vision. It represents the culmination of meticulous planning and collaboration among various stakeholders who share a common goal of building a resilient and prosperous Access Holdings Plc., the management added.

The apex bank has revised the minimum capital base requirements for commercial banks. Institutions with national authorization must now maintain a minimum capital base of N200 billion, while those with regional authorization must hold a minimum of N50 billion. Merchant banks are now required to have a minimum capital base of N50 billion, while non-interest banks with national and regional authorizations must adhere to new minimum requirements of N20 billion and N10 billion, respectively.

July 03, 2024