Shareholders Approve Access Holdings Capital Raising Programme
Access Holdings final dividend stood at N1.80 kobo per every N0.50 kobo ordinary share for the 2023 financial year
Access Holdings Plc has disclosed that plans are ongoing to implement a user-friendly digital platform to facilitate seamless participation in the rights issue.
It said 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 disclosure is coming on the heels of the shareholders of Access Holdings Plc approving the Group’s plan to establish a capital raising programme of up to $1.5 billion and a subset initiative to raise about N365 billion, specifically, through a Rights Issue of ordinary shares to its shareholders.
Access Holdings Plc Chairman, Aigboje Aig-Imoukhuede, disclosed this during the group’s Annual General Meeting which took place in Lagos at the weekend.
While addressing concerns made by shareholders over shares dilution at the meeting, Aig-Imoukhuede reassured its shareholders that their ownership percentage would not be diluted if they participate actively in the rights issue.
“With over 800,000 shareholders, the group is implementing a user-friendly digital platform, allowing shareholders to make investment decisions conveniently via their smartphones,” he said.
On the 2024 capital raising exercise, he highlighted the democratisation of the capital market as a result of increased shareholder participation and noted that the number of shareholders of Nigerian banks and the entire stock exchange increased as a result of that effort.
The Access Holdings Plc chairman expressed confidence that this approach would effectively address concerns surrounding dilution and encourage broader shareholder engagement.
In addition to approving the group’s capital raising programme, as well as a final dividend of N1.80 kobo per every N0.50 kobo ordinary share for the 2023 financial year, marking a 28 per cent improvement from the corresponding period in 2022, the shareholders also ratified the appointments of Aigboje Aig-Imoukhuede, Olusegun Ogbonnewo, and Ojinika Olaghere as non-executive directors.
They also hailed the appointment of Aig-Imoukhuede as the chairman of Access Holdings Plc.
Emeritus Chairman of the Independent Shareholders Association of Nigeria (ISAN), Chief Sunny Nwosu said, “We are thrilled with Aig-Imoukhuede’s return to the role of chairman. His proven track record, experience, and strategic insights position him as the ideal leader to steer Access Holdings toward meeting its lofty targets.
“During his tenure as CEO, particularly during the recapitalisation directive by the CBN, he steered Access Bank to raise an impressive $2 billion in capital, and this demonstrates his capacity to, once again, lead Access Holdings towards successfully achieving the objectives of our planned Capital Raise and Rights Issue targets.”
Access Holding’s full-year results for the period ending December 31, 2023, showed an impressive 335 per cent increase in pre-tax profit to N729 billion from N167.68 billion in 2022.
The Group also experienced an 87 per cent surge in gross earnings to N2.59 trillion from N1.39 trillion in 2022 and reported a remarkable 306 per cent growth in profit after tax to N619.32 billion, from N152.20 billion in 2022.
Looking at the future, it said, “Commencing in the second half of 2024, Access Holdings’ global expansion strategy will enter the consolidation and efficiency phase, aligning with its five-year plan to accelerate the attainment of its 2027 strategic objectives.
“The Group remains focused on driving sustainable growth, and delivering value to its shareholders even as it continues to build a globally connected community and ecosystem, inspired by Africa, for the world.”
On the utilisation of the proceeds from the rights issue, the group Chief Executive Officer of Access Holdings, Bolaji Agbede, explained that the banking subsidiary would be getting a huge chunk of it to meet the regulatory requirements of the apex bank.
“In terms of the proceeds from the rights issue which we are hoping to get about N365bn, we will be giving the bulk of it to the banking group to enable them to meet the CBN’s capital requirement.
“Part of the things that they are using it for is as working capital requirements for investment in African subsidiaries as some of the growth in the international subsidiaries that they have.”