Access Holdings Holds Signing Ceremony for Proposed N351 Billion Rights Issue

Nume Ekeghe and Kayode Tokede

Access Holdings Plc yesterday conducted a formal signing ceremony as part of its arrangements to raise a total of N351,009,103,017.25 through a Rights Issue to existing shareholders.

The strategic move aimed to enhance the group’s working capital requirements, facilitating organic growth for its banking and non-banking subsidiaries.

Access Bank in a statement noted that the signing ceremony was held at Access Tower, the corporate office of Access Holdings in Lagos. During the company’s 2nd Annual General Meeting (AGM) on April 19, 2024, shareholders unanimously supported the plan to execute a Capital Raising Programme of approximately $1.5 billion, including raising capital through a Rights Issue of ordinary shares.

Under this Rights Issue, Access Holdings will issue 17,772,612,811 ordinary shares of N0.50 each at N19.75 per share on the basis of 1 new ordinary share for every 2 existing ordinary shares held as of Friday, June 7, 2024.

At the ceremony, Acting Managing Director/Chief Executive Officer of Access Holdings Plc, Bolaji Agbede, stated: “The rights issue is a significant step in delivering our 2023-2027 strategic plan. The additional capital will enable us to maximise emerging opportunities and deliver long-term value to our shareholders.”

Chapel Hill Denham is the Lead Issuing House to the offer, while Atlas Registrars Limited will serve as Registrars through the exercise.

The Joint Issuing Houses are Coronation Merchant Bank, Stanbic IBTC Capital, Vetiva Advisory Services, Greenwich Merchant Bank, FCSL, First Ally Capital, FCMB Capital, Renaissance Capital Africa and Meristem Capital.

Other parties to the Offer are Coronation Merchant Bank, Coronation Securities, Chapel Hill Denham Securities Limited, FSDH Capital, Cordros Capital, Cowry Securities, First Integrated Capital Management Ltd, Network Capital Ltd, CSL Stockbrokers Limited, Compass Investment & Securities Ltd, PAC Securities Limited, Dynamic Portfolio, Chartwell Securities Limited, Tiddo Securities Limited, and Futureview Securities Limited.

Subject to approval of the Securities and Exchange Commission (SEC), the Acceptance and Application Lists for the Rights Issue are expected to open on Monday, July 8, 2024, and close on Thursday, August 8, 2024.

The Rights Circular for the Issue, which contains a Provisional Allotment Letter and the Participation Form, will be mailed directly to shareholders of the Group. Printed copies of the Participation Form can also be obtained at any Access Bank branch and the offices of the Issuing Houses during the Offer Application Period.

The bank further stated: “All existing shareholders and prospective investors are encouraged to read the Rights Circular and Prospectus and, where in doubt, consult their Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other professional adviser for guidance before subscribing.”