Access Holdings off the blocks with N365bn rights issue capital booster

Cynthia Ezekwe

With its sights set on continued growth, Access Holdings Plc has unveiled an ambitious plan to raise N365 billion through a rights issue. The capital-raising plan, which is pending regulatory approval, is a move that is set to strengthen the company’s capital base, setting it up for even greater success in the years to come.

The financial institution stated that it will present the capital-raising plan to its shareholders at its annual general meeting on April 19th, where shareholders will have the opportunity to vote on the proposal at the meeting. It noted further that any shares not taken by existing shareholders within the period stipulated under the rights issue may be offered for sale to other interested shareholders of the company on such terms and conditions as may be determined by the directors subject to the approvals of the relevant regulatory authorities.

Access Holdings Plc also indicated that its board of directors will seek shareholder approval for a capital raising programme of up to $1.5 billion. This is a significant amount of capital, and the company is seeking the approval of its shareholders to ensure that the program is carried out in a transparent and accountable manner.

The statement noted that the capital raising program may involve the issuance of ordinary shares, preference shares, Alternative Tier 1, convertible and/or non-convertible notes, bonds, or any other instruments. These could be issued through a variety of methods, including public offering, private placement, rights issue, book building process, or any other method or combination of methods. The terms and conditions of the issuance will be determined by the board of directors, subject to obtaining the necessary regulatory approvals. 

In addition to the capital raising programme, shareholders will also be asked to approve an increase in the company’s issued share capital. This increase will take the company’s total issued share capital from N17.77 billion, divided into 35.545 billion ordinary shares of N0.50 Kobo each, to N26.658 billion, with the creation of 17,772,612,811 new ordinary shares of N0.50 Kobo each. These new shares will rank pari-passu, or equally, with the existing ordinary shares of the company.