By Olufemi Jacob

The over 920,000 shareholders of Access Holdings Plc are excited that the banking group’s rights issue will soon open today, providing another opportunity to expand their stakes in Nigeria’s biggest financial company by assets. Barring any unforeseen development, Access Holdings rights issue to raise N351.09 billion will open on today, July 8 and close on Thursday, August 8.

It is one of the largest capital raising programmes in the nation’s capital market in recent years, instigated largely by the Central Bank’s upward review of the minimum share capital for banks. International banks, of which Access is one of the few, are expected to grow their capital base to a minimum of N500 billion, according to a CBN policy announced last March by Governor Yemi Cardoso. With the additional N351 billion, Access will easily surpass the target, becoming one of Nigeria’s biggest financial services company by shareholders’ funds. It already occupies the top spot by assets and number of customers.  

Recently, Access Holdings held a formal signing ceremony with key participants in the offer as part of the arrangements to raise the funds. The money would be deployed to enhance its working capital requirements, and this includes organic growth funding for its banking and non-banking subsidiaries. Simply put, Access Holdings will use part of the N351 billion to acquire other banks and non-bank businesses across the world. Opting for solely a rights issue instead of combining it with a public offer as done by other banks is a deliberate attempt to protect the retail shareholders from dilution. ”In 2002 when we took over Access Bank, we had promised the existing shareholders that they would always be carried along as we grow. This rights issue is one example of our commitment to that pledge,” says Access Holdings Chairman Aigboje Aig-Imoukhuede.

It is a vow that resonates with the shareholders. Says Chief Sunny Nwosu, a well-known investor in the banking industry and an important player in the capital market, ”Access Holdings’ stocks are easily some of the best investment options in the country. I am sure that this offer will be oversubscribed, especially with the array of well-heeled foreign investors in its books”. Another shareholder, Mrs Bisi Bakare puts it more succinctly, ”the quality of management of Access Holdings; its resilience; time-tested traditions of integrity and transparency endear the bank to the investing public. Consistently, we have seen our investments grow and we are happy.”

The signing ceremony with respect to the Offer was held at Access Tower, the corporate office of Access Holdings in Lagos. Access Holdings’ shareholders had at its 2nd Annual General Meeting (AGM) on Friday, April 19, unanimously backed its plan to execute a Capital Raising Programme of about US$1.5 billion as well as the subset initiative to raise capital through a Rights Issue of ordinary shares to its shareholders.

Under the Rights Issue, the bank will offer 17.7 billion ordinary shares of N0.50 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 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”, enthused Bolaji Agbede, acting Managing Director/Chief Executive Officer of Access Holdings at the signing event.

Jacob writes from Lagos