Business News

Shareholders approve Access Holdings’ $1.5 billion capital raising plan

Shareholders of Access Holdings Plc, at the 2nd Annual General Meeting (AGM) held on Friday in Lagos, endorsed the group’s plan to establish a capital raising programme of up to $1.5 billion as well as the subset initiative to raise up to N365 billion through a rights issue.

The proceeds of the rights issue would be used to support ongoing working capital needs, including organic growth funding for its banking and other non-banking subsidiaries.

The shareholders also ratified the appointments of Aigboje Aig-Imoukhuede, Olusegun Ogbonnewo, and Ojinika Olaghere as non-executive directors.

The appointment of Aig-Imoukhuede as the chairman of Access Holdings was cheered by the shareholders, who pointed to his history of success with the institution, having transformed it into Nigeria’s biggest lender by market value alongside late Herbert Wigwe.

Aigboje’s leadership was instrumental in driving the institution’s growth during the 2004 recapitalisation of the banking industry led by the Central Bank of Nigeria (CBN) under the leadership of its former Governor, Prof. Charles Soludo, shareholders said.

In line with the Group’s financial performance, the payment of a final dividend of N1.80 kobo per every N0.50 Kobo ordinary share for the 2023 financial year was approved, marking a 28% improvement from the corresponding period in 2022.

The Group’s full-year results for the period ending December 31, 2023, showed a 335% increase in pre-tax profit to N729 billion from N167.68 billion in 2022.

The Group also experienced an 87% surge in gross earnings to N2.59 trillion, from N1.39 trillion in 2022, and reported a 306% growth in profit after tax to N619.32 billion, from N152.20 billion in 2022.

Naijaonpoint had earlier reported that Access Holdings, one of Nigeria’s largest financial institutions, has plans to raise 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).