Business
Access Holdings Embarks on Landmark N351 Billion Rights Issue to Strengthen Capital Base
Access Holdings Embarks on Landmark N351 Billion Rights Issue to Strengthen Capital Base
In a strategic move to bolster its financial position and drive future growth, Access Holdings Plc has announced plans to raise a staggering N351 billion through a rights issue to its existing shareholders. This ambitious capital-raising initiative is a critical component of the group’s broader 2023-2027 strategic plan, as it seeks to enhance its working capital requirements and support the organic expansion of its banking and non-banking subsidiaries.
The rights issue, which is subject to the approval of the Securities and Exchange Commission (SEC), is set to commence on Monday, July 8, 2024, and close on Thursday, August 8, 2024. Under the terms of the offer, the company will issue 17.772 billion ordinary shares with a nominal value of N0.50 each at a price of 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.
Addressing the significance of this initiative, Bolaji Agbede, the Acting Managing Director/Chief Executive Officer of Access Holdings Plc, emphasized that the rights issue is a crucial step in realizing the group’s ambitious 2023-2027 strategic plan. “The additional capital will enable us to maximize emerging opportunities and deliver long-term value to our shareholders,” Agbede stated.
The company has assembled a formidable team of financial advisors to oversee the successful execution of the rights issue, with Chapel Hill Denham serving as the Lead Issuing House and Atlas Registrars Limited acting as the Registrars. The Joint Issuing Houses include reputable institutions such as Coronation Merchant Bank, Stanbic IBTC Capital, Vetiva Advisory Services, and several others.
As Access Holdings Plc embarks on this transformative journey, the company encourages all existing shareholders and prospective investors to carefully review the Rights Circular and Prospectus, and to seek guidance from their financial advisors before participating in the rights issue.
This strategic capital-raising initiative underscores Access Holdings’ commitment to strengthening its financial foundation and positioning the group for sustained growth and value creation in the years ahead.
