Access Holdings has received the approval of the Securities and Exchange Commission to raise N351bn through rights issue.
Consequently, the offer will open on Monday, July 8, 2024, and close on Wednesday, August 14, 2024.
A rights issue is when a company invites its current shareholders to buy more shares at a discount.
The Holdco is offering the shares at a price of N19.75 per share.
The capital raise would enable the holding company to raise capital for its flagship bank, Access Bank in order to meet the new Central Bank of Nigeria recapitalization directives for all deposit money banks in the country.
The Holdco said in a regulatory filing obtained by THE WHISTLER that the approval marks a โsignificant milestone in the Groupโs previously announced Capital Raising Programme, which aims to generate up to $1.5bn.
โThe Rights Issue is strategically structured to bolster Access Holdingsโ financial position and support ongoing working capital needs. It will also provide funding for organic growth across its banking and non-banking subsidiaries.โ
The companyโs shareholders in April approved the capital raise of $1.5bn or its equivalent through a shares and bond issuance programme.
Also, the shareholders approved the boardโs plan to increase the companyโs share capital from N17.7bn to N26.65bn by the creation of 17,772,612,811 ordinary shares.
Access Holdings said, โThe approved Rights Issue offers 17,772,612,811 ordinary shares of N0.50 each at a price of N19.75 per share.
โThe offer will be issued on the basis of one (1) new ordinary share for every two existing ordinary shares held as of Friday, 7 June 2024.โ
Access Holdings has appointed Chapel Hill Denham Advisory Limited as the lead issuing house while Atlas Registrars Limited to serve as the Registrarsย toย theย offer.