Plans to raise N351.01 billion through a Rights issue for current shareholders have been finalised by Access Holdings Plc.
The group claims that the offer is a component of its plan to increase working capital, which also includes financing organic expansion for its non-banking and banking businesses.
On Tuesday, June 2, 2024, the offer was signed at Access Tower, Access Holdings’ corporate headquarters in Lagos.
Recall that Access Holdings’ shareholders overwhelmingly approved its plan to carry out a capital raising programme totaling approximately US$1.5 billion, as well as the subset initiative to raise capital through a Rights issue of common shares to its shareholders, at its 2nd Annual General Meeting (AGM), which took place on Friday, April 19, 2024.
The banking and finance news holds that, a total of 17,772,612,811 (seventeen billion, seven hundred and seventy-two million, six hundred and twelve thousand, eight hundred and eleven) ordinary shares of N0.50 each will be issued under the Rights issue. The price per share will be N19.75, with one new ordinary share for every two existing ordinary shares held as of Friday, June 7, 2024.
Bolaji Agbede, Access Holdings Plc’s acting Managing Director and Chief Executive Officer, said during the signing ceremony: “The Rights Issue” represents a major milestone in achieving our strategic plan for 2023-2027. The raised capital will empower the company to take advantage of emerging opportunities and deliver lasting value to our shareholders.’’
While Atlas Registrars Limited will act as Registrars throughout the exercise, Chapel Hill Denham is the Lead Issuing House to the Offer.
Coronation Merchant Bank, Vetiva Advisory Services, Stanbic IBTC Capital, Greenwich Merchant Bank, FCSL, First Ally Capital, FCMB Capital, Renaissance Capital Africa, and Meristem Capital are the Joint Issuing Houses.
Coronation Securities, Chapel Hill Denham Securities Limited, FSDH Capital, Cowry Securities, Coronation Merchant Bank, Compass Investment & Securities Ltd, PAC Securities Limited, Dynamic Portfolio, Chartwell Securities Limited, Tiddo Securities Limited, and Futureview Securities Limited are additional parties to the offer.
The Acceptance and Application Lists for the Rights Issue are anticipated to open on Monday, July 8, 2024, and conclude on Thursday, August 8, 2024, subject to approval by the Securities and Exchange Commission (SEC).
Continuing, the Provisional Allotment Letter and Participation Form, along with the Rights Circular for the Issue, will be mailed directly to the shareholders of the Group. During the Offer Application Period, printed copies of the Participation Form are also available at any Access Bank branch as well as the Issuing Houses’ offices.
However, before making a subscription, all current shareholders and potential investors are urged to read the Rights Circular and Prospectus and, if in doubt, seek advice from their stockbroker, fund/portfolio manager, accountant, banker, solicitor, or other professional adviser.
