Access Holdings Plc, the parent company of Access Bank, has secured “full regulatory approval” from the CBN and SEC for its Rights Issue.
The bank was the first of the FUGAZ to embark on a right issue earlier in the year where it sought to raise N351 billion, increasing its share capital to N600 billion.
The bank confirmed in a recent notice to investors that it successfully raised the N351 billion becoming the first to surpass the CBN’s N500 billion minimum capital requirement for banks with international authorization, well ahead of the March 2026 deadline.
According to the disclosure, the rights issue of 17,772,612,811 Ordinary Shares at 50 Kobo each, priced at N19.75 Kobo per share, raised the bank’s share capital to N600 billion, exceeding the Central Bank of Nigeria’s threshold of N500 billion by N100 billion.
The statement noted:
“Access Holdings Plc (‘the Company’) has secured full regulatory approvals from the Central Bank of Nigeria and the Securities and Exchange Commission for its recently closed Rights Issue of 17,772,612,811 Ordinary Shares at 50 Kobo each at N19.75 Kobo per share (‘the Rights Issue’), successfully raising the target amount of N351,009,103,017.25.”
According to the disclosure, the NGX E-offer platform facilitated the rights issue, providing a seamless and efficient experience for shareholders while reducing barriers to participation.
The company Chairman, Aigboje Aig-Imoukhuede, CFR, stated that the success in its right issues confirms shareholder confidence in the bank
“The success of the Rights Issue not only showcases the resilience of Nigeria’s capital market but also reinforces our shareholders’ confidence in the current value and future potential of our Company.”
Despite being the largest financial services company in the country, the tier-one financial institution has often trailed its peers when it comes to share price performance and dividend yield.
Access Holdings opened the year with a share price of about N25, it is currently trading at N24.4. However, the share price is up 23% from its right issue price.
Backstory
On July 7, 2024, Access Holdings Plc announced that it received approval from the Securities and Exchange Commission (SEC) for a rights issue of 17.77 billion ordinary shares, priced at N19.75 each.
- This offer allows shareholders to acquire one new share for every two shares held as of June 7, 2024.
At the Signing Ceremony, Bolaji Agbede, the Acting Managing Director/CEO of Access Holdings Plc, mentioned, “The Rights Issue is an important part of our 2023-2027 strategic plan. The capital raised will help us take advantage of new opportunities and provide value to our shareholders.”
- Due to nationwide protests that disrupted business activities across Nigeria, the closing date for the rights issue was extended from August 14 to August 23, following SEC approval.
This extension ensured that all interested shareholders got a fair chance to participate.
