Access Holdings extends rights issue by one week

Access Holdings Plc has extended the duration of its rights issue, earlier scheduled to end on Wednesday, 14 August, by a week, allowing Nigeria’s biggest lender by assets more days to make up for the disruption caused by the nationwide protests against the cost-of-living crisis to its bid to raise N351 billion in fresh capital.

“The decision is in response to the recent nationwide protest that disrupted operations of businesses and individuals across Nigeria and to provide shareholders with ample opportunity to subscribe to their rights,” the group said in a regulatory filing seen by PREMIUM TIMES.

Access Holdings opened the rights issue on 8 July, inviting applications from existing shareholders to subscribe for new shares on the basis of one ordinary share for every two held by 7 June at N19.75 per unit.

The 17.8 billion shares to be issued during the capital raise will increase the outstanding shares of the corporation by 50 per cent to 53.3 billion at the end of the offer period provided all the rights are taken.

The lender is conducting the rights issue to raise capital buffers that will help it meet new recapitalisation requirements by the Central Bank of Nigeria.

According to the directive, Nigerian banks have 48 months, beginning from March 2024, to meet the conditions based on the categories of their operating licences.

Access Holdings, which has an international banking permit, is expected to beef up its capital base to at least N500 billion before the deadline.

The likes of FBN Holdings, United Bank for Africa, Guaranty Trust Holding Company, Zenith, Fidelity and FCMB Group all fall within this category.

The proceeds from Access Holdings’ rights issue are to be used for purposes ranging from working capital enhancement, strategic expansion, organic growth in the banking business as well as consolidation of investments in non-banking subsidiaries.

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“During the extended period of the Issue, dealings by the company’s insiders on the company’s shares will continue to be strictly limited to the participation of the rights issue as earlier approved by the Exchange in respect of the non-dealing period on the company’s audited interim financial statements for the period ended June 30, 2024, until 24 hours after the publication of the interim financial statements,” the document said.

Zenith Bank, one of the country’s megabanks, launched a public offer and a rights issue on Tuesday, seeking to raise N290 billion, while GTCO’s N400 billion public offer, which opened on 15 July, closed on Monday.

Access Holdings has shed 16.4 per cent of its share value since the beginning of the year, underperforming the NGX 30 – the index that tracks the top 30 companies on the Nigerian Exchange in terms of liquidity and market capitalisation – which has returned 29.1 per cent.