LAGOS, Nigeria (VOICE OF NAIJA)- Access Holdings Plc is set to launch its rights issue of 17,772,612,811 ordinary shares to existing shareholders on Monday, July 8, 2024.
During the Rights Issue signing ceremony at Access Holdings’ corporate headquarters in Lagos on Tuesday, the Group Managing Director of the holdco, Mrs. Bolaji Agbeje, emphasized that the rights issue aims to generate tangible value and strategically position the group for sustained future growth.
“Our success is rooted in our resolute dedication to excellence, our strategic vision, market research, resilience, and ability to adapt to the ever evolving financial landscape.
With this ceremony, we are advancing our vision to foster a connected community and ecosystem inspired by Africa for global impact.
“Indeed, the realisation of this vision requires the full backing of our valued shareholders. It is your support thaensures that we optimise the emerging opportunities in the ecosystem and create long term value.
“The rights issue, which is a key component of our 2023-2027 strategic plan, is opened to existing shareholders at N19.75 per share.
Offered on a one-for-two basis for shares held as of Friday, June 7, 2024, we are optimistic about the positive reception from our shareholders.
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“We appreciate your continued trust and support. And we look forward to your full participation once the offers is opened on Monday, July 8, 2024.
The Rights Issue represents progress towards achieving the new N500 billion capital requirement mandated for leading commercial banks in Nigeria.
According to a circular from the Central Bank of Nigeria issued in April 2024, banks must meet this recapitalization deadline by March 31, 2026.
Chairman of the group, Aigboje Aig-Imoukhuede, highlighted that this marks Access Corporation’s second rights issue, following its initial rights issue in 2002.
“Today, we are here for another significant corporate action in the life of the Access ecosystem. We want to write another chapter in the history of Access Holdings.
It is significant for me for many reasons. This is the first time that we are bringing to the market Access Bank financial instrument that Herbert is not there. It seems very strange. But we know he is part of this offer. He is sitting here with us in spirit. And the spirit is very present in our hearts.”
Aig-Imoukhuede noted that many stakeholders had inquired about the timing of the firm’s capital raising steps, coinciding with the Central Bank’s announcement of the recapitalization requirements.
“I now know how it feels when in 2004 the central bank announced recapitalisation and just before that, the largest bank in Nigeria was coincidentally taking steps. I don’t think it is coincidence that the largest bank in Nigeria now has taken steps ahead of the central bank announcement.
“Therefore, it speaks to our strategic intent and it enables early compliance with the central bank overall recapitalisation of our sector.
Our steps were not driven by that alone. The proceeds will be used to support our noble intention to fly the Access Bank flag across Africa and beyond Africa. And that capital will be deployed in line with our quite formidable rolled out programmes.”
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According to the Access Holdco chair, the raised funds will also support the group’s ventures in non-banking sectors, pension, and fintech initiatives.
*So, we are offering 17,772,612,811 new ordinary shares to our existing shareholders, which is an indication that we don’t leave anyone out in Access. Yes, we have become the largest bank in Nigeria with under a million shareholders. We felt it was necessary that everybody is carried along in this capital raise exercise as it marks an important time in our history and to benefit from the long term value opportunities that exist in Access stock,” he asserted.
Also, the Managing Director of Access Bank, Roosevelt Ogbonna, emphasized that rights issues, public offers, and corporate actions provide the bank with opportunities to assess its collective strength and determination.
“Every time we have been put to that test, we have passed in flying colours.
“The truth is that it is an opportunity for us to bind together as a board and more importantly, as a stakeholder group,” he averred.
Ogbonna pointed out that the bank’s last rights issue, conducted 22 years ago, was oversubscribed.
“In the previous rights issue or capital raise that we had, we have never been at an influential point that we are today. We are the largest bank in our market, the first top 10 banks in Africa, first African bank in Honk Kong, first African bank in Malta, one of thej three African banks in Dubai, etc.,” he declared.