By Dipo Olowookere
The commencement of the N351 billion rights issue of Access Holdings Plc is already creating a buzz in the Nigerian capital market.
The exercise has been anticipated by investors and the investment community in the country because of the value the financial services provider gives to shareholders.
Access Holdings, which transformed from Access Bank after it adopted a holding company (HoldCo) structure, used to trade below N10 per share at the Nigerian Exchange (NGX) Limited a few years ago.
At the moment, it is almost selling at N20.00 per unit on the same platform and could potentially be near N30.00 per share in the near future.
As part of its efforts to deliver more value, the company is seeking fresh capital through the issuance of 17,772,612,811 ordinary shares of 50 Kobo each at N19.75 per share on the basis of one new ordinary share for every two existing ordinary shares held as of Friday, June 7, 2024.
The rights issue is open for subscription from today, Monday, July 8, 2024, till Wednesday, August 14, 2024, with Chapel Hill Denham Advisory Limited as the lead issuing house and Atlas Registrars Limited as the registrars to the offer.
The exercise commenced today following the approval of the Securities and Exchange Commission (SEC).
The acting chief executive of Access Holdings, Ms Bolaji Agbede, has described the commencement of the rights issue subscription as “an important step in our growth strategy and capital raising plans, reinforcing our financial strength and accelerating our strategic ambitions.”
“However, this execution is more than a capital raise; it is a pivotal process that will propel us towards our goal of becoming one of the top five financial institutions in Africa by 2027.
“We are confident that this exercise will solidify our position as a market leader and drive sustainable growth for years to come,” she added.
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.
It 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.
The firm paid a final dividend of N1.80 per share for the 2023 financial year to shareholders, representing a 28 per cent increase from the previous year.
The N351 billion rights issue is a subset of Access Holdings’ capital raising programme designed to generate up to $1.5 billion to strengthen its financial footing and support ongoing working capital needs, including organic growth funding for its banking and non-banking subsidiaries.
Aduragbemi Omiyale