Access Holdings Eyes Global Expansion with N351bn Rights Issue

Kayode Tokede

Access Holdings Plc yesterday disclosed that it aimed to become a global financial institution as it  raise N351 billion via rights issue from existing shareholders on the Nigerian Exchange Limited (NGX).

The Chairman, Access Holdings, Mr. Aigboje Aig-Imoukhuede disclosed this in Lagos during the Pan-Africa’s financial institution’s “Facts Behind the Rights Issue Presentation.”

Access Holdings’ Rights Issue offered 17,772,612,811 ordinary shares of N0.50 each at N19.75 per share.  The Offer will be issued on the basis of one  new ordinary share for every two  existing ordinary shares held as of June 7, 2024.

Speaking to the capital market community, Aig-Imoukhuede acknowledged the role of the exchange in transforming corporate governance in Nigeria, stressing that the NGX has enabled connectivity with shareholders.

Aig-Imoukhuede lauded the NGX for providing a platform that enables entrepreneurs, dreamers, visionaries and institutions to connect with shareholders or investors based on their understanding of the strategy.

He stated that the fact behind the figure is to ensure that issuers do not just tell a story of numbers, but what is behind it, which are more important than the numbers.

Aig-Imoukhuede said that the rights issue is a precursor to a number of other financings that management would be doing to support consolidated expansion process.

“Since 2002, our shareholders have stood with us thick and thin. We could have had all types of offerings to the benefit of all other investing public but we said no.”

The first step will be the step that we took in 2002 with people like you, and I know that you will stand with us again. Please take up your rights.

According to him, the rights Issue though a financial exercise, is actually a continuation of the Access Bank story.

He tagged the theme of the Holdings capital market raise as: “promises kept”, stressing that the group had kept its promises for the investing public over the years.

Aig-Imoukhuede added that, “We did a rights issue and a rights alone to signal to the world that that pact between us can never be broken.

In his presentation, the Group Managing Director/CEO, Access Bank Plc, Mr.  Roosevelt Ogbonna, stated that the target of the group is for its bank subsidiary to become the world’s first truly Africa’s global bank in the financial services sector.

Ogbonna stated that the bank intended to power trade and payment across the continent and become a platform that connects the African continent and catalise capital and business.

He noted that the group is focusing on continents that are profitable for the banks from an economic point of view, which is led by Southern Africa, followed by East Africa, West Africa and Central Africa.

According to him, Access Holdings was built on a very strong governance, Board that has guided the narrative and engagement between the financial  institution and its stakeholders.

Looking ahead, the managing director stated that the group would build several ecosystems that would operate on its platform, such as the mobility and the housing ecosystem.

“We are very excited as to what the future holds. The Bank would be the core of the financial services Holdings that we are building and we will also create significant value for our larger stakeholders “ he said.

In his opening remarks, the Chairman, NGX Group Plc, Dr. Umaru Kwairanga, stated that in just two decades,  Aig-Imoukhuede and late Herbert Wigwe have transformed a struggling bank into the biggest financial institution service in Nigeria and one of the biggest in Africa.

He noted that the management of Access Holdings over the years have focused on first class human resources, processes and services, stressing that the Group has ensured consistency for such a large conglomerate from top-to-bottom.

“Ordinarily, I will say Access Holdings does not have to broadcast why its offer is a good buy given heavy rewards that average investors have enjoyed over the years in the form of regular dividend, and capital appreciation,” Kwairanga said.

He noted  that the future is brighter for Group, commended shareholders to partake in the rights issue.

He added:” On our part at the Exchange, we are committed to doing all that is necessary to ensure that all issuance like Access Holdings, both wholesale and retail shareholders have seamless and efficient interface during this recapitalisation period.”

Speaking also, the Chairman, NGX Limited, Mr. Ahonsi Unuigbe, said: “Despite prevailing economic headwinds, the NGX recognizes the concerted efforts of the Board and Management of Access Holdings in enhancing the capital adequacy ratio of its flagship subsidiary, Access Bank.

‘Ensuring an adequate capital buffer that complies with Basel III, sufficient to withstand economic shocks and ensure business continuity, is crucial. Most importantly, these efforts play a significant role in restoring investors’ confidence.

“The story of Access Bank is one of the most acclaimed in the industry and is frequently cited in case studies at reputable institutions worldwide.”