Recapitalisation: Access Holdings’ market cap hits N1.3trn

Access Holdings Plc at the weekend formally concluded the main thrust of its recapitalisation programme with the listing of additional shares that arose from its recent rights issue at the Nigerian Exchange (NGX).

The new listing boosted Access Holdings’ market capitalisation to N1.29 trillion, enhancing the financial services group’s status as one of the most influential stocks on the stock market.

The NGX listed 17.773 billion ordinary shares of 50 kobo each of Access Holdings at N19.75 per share. The additional shares arose from Access Holdings’ recent rights issue, which was fully subscribed.

With the listing of about 17.773 billion ordinary shares, the total issued and fully paid-up shares of Access Holdings increased from 35.545 billion shares to 53.318 billion ordinary shares of 50 Kobo each.

This implied total market capitalisation of N1.29 trillion at the group’s closing share price at the weekend.

Access Holdings closed weekend at N24.15 per share, representing capital gain of 22.3 percent on the rights’ price of N19.75 per share.

The listing at the weekend concluded the regulatory recapitalisation for the group, having surpassed the new minimum capital requirement of N500 billion stipulated by the Central Bank of Nigeria (CBN).

Access Holdings had earlier secured full regulatory approvals from the CBN and the Securities and Exchange Commission (CBN) for its recently concluded rights issue of 17.77 billion ordinary shares of 50 Kobo each at N19.75 per share, successfully raising the target amount of N351 billion.

As at the third quarter 2024, Access Holdings had share premium and share capital of N251.81 billion. With the new equity funds, the company now has share premium and share capital of N602.8 billion, N102.8 billion above N500 billion stipulated by the CBN under the ongoing recapitalisation exercise.

Chairman, Access Holdings Plc, Aigboje Aig-Imoukhuede, said the Access brand has always resonated strongly with local and international capital markets.

Since 2004, Access Bank has raised billions of dollars in capital to meet successive CBN recapitalisation directives. We are pleased that this time, we are the first to cross the finish line.

“The success of the Rights Issue demonstrates the resilience of Nigeria’s capital market and reinforces our shareholders’ confidence in the present value and potential of our company.

“We deeply acknowledge the invaluable and strong support of the Central Bank of Nigeria and the Securities and Exchange Commission, who both played crucial roles in ensuring the integrity and efficacy of our Rights Issue exercise.

 ”We are also grateful to our valued shareholders, whose loyalty to the Access brand and vision for over 22 years has been most inspiring and unwavering. As we enter the new year, we are well-positioned to leverage our enhanced capital base to deliver sustainable value for our stakeholders,” Aig-Imoukhuede said.

The bank noted that by utilising the NGX’s E-offer platform, the company provided its shareholders with a seamless, efficient, and convenient subscription experience, significantly reducing barriers and democratising participation in the rights issue.

Meanwhile, Access Holdings still has enough headroom to raise additional capital under the multi-tranche, multi-currency and multi-instrument capital raising exercise approved by its shareholders.

At their annual general meeting in Lagos, shareholders of Access Holdings had mandated the company to raise $1.5 billion and N365 billion in a new capital raising exercise.

At the meeting, shareholders increased the issued share capital of the company from N17.773 billion of 35.545 billion ordinary shares of 50 Kobo each to N26.659 billion of 53.318 billion ordinary shares of 50 kobo each by the creation of additional 17.773 billion ordinary shares of 50 Kobo, ranking pari-passu with the existing ordinary shares of the company.

The meeting also approved a resolution empowering the board to establish a capital raising programme of up to $1.5 billion or its equivalent, through the issuance of ordinary shares, preference shares, Alternative Tier 1, convertible and/or non-convertible notes, bonds or any other instruments, whether by way of a public offering, private placement, rights issue, book building process or any other method or combination of methods, in such tranches, series or proportions and at such dates, coupon or interest rates within such maturity periods and upon such terms and conditions as may be determined by the board subject to obtaining the requisite regulatory approvals.

Shareholders mandated the company to raise capital of up to N365 billion by way of a rights issue on such terms and conditions and on such dates as may be determined by the directors, subject to obtaining the approvals of the relevant regulatory authorities.

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