Access Holdings, one of Nigeria’s largest financial institutions, has announced plans to raise a staggering N365 billion (Three Hundred and Sixty-Five Billion Naira) through a rights issue.
The company is also seeking a combined capital raise of up to $1.5 billion via equity, quasi-equity, and debt issuances.
This strategic move is expected to fortify the bank’s capital base, supporting its continued expansion and its ability to seize emerging opportunities in the financial sector.
The details of this planned capital raise were made public in a notice about an upcoming Annual General Meeting, which was disseminated via the Nigerian Exchange Group (NGX).
As part of this monumental rights issue, Access Holdings (aka Access Corporation) will see an expansion in its issued share capital from N17,772,612,811.00 , divided into 35,545,225,622 ordinary shares, to N26,658,919,216.50.
This expansion is facilitated by the creation of an additional 17,772,612,811.00 ordinary shares, each priced at N0.50 Kobo, which will rank pari-passu with the existing shares of the company.
Moreover, the Board of Directors is also seeking the authority to embark on a capital raising programme of up to US$1,500,000,000.00 (One Billion, Five Hundred Million United States Dollars) or its equivalent.
Access Holdings, following the announcement of its fiscal year 2023 results, has disclosed a total share capital of approximately N2.1 trillion. Within this share capital, retained earnings amount to about N715 billion, alongside “other components of equity” totaling around N936.7 billion.
This approach to raise capital highlights the company’s ambition to expand its footprint and enhance its market presence across the continent, leveraging acquisitions to fuel its growth ambitions effectively.