Access Holdings led by Aigboje Aig-Imoukhuede announces $229-million rights issue for expansion

Timilehin Adejumobi -

Key Points:

  • Access Holdings Plc announces $229-million capital raise through rights issue to boost working capital and support growth.
  • Funds to boost working capital and support growth across banking and non-banking arms. 
  • Capital raise follows shareholder approval of $1.7-billion program, enhancing Access Holdings’ strategic expansion.

Access Holdings Plc, a leading African financial services group led by Nigerian banker and investor Aigboje Aig-Imoukhuede, has announced a $229-million capital raise through a rights issue to existing shareholders. The move revealed at a formal signing ceremony in Lagos, marks a significant milestone in the group’s strategic expansion plans, both within Africa and globally.

The rights issue, valued at N351 billion ($229 million), seeks to enhance Access Holdings’ working capital and support organic growth across its banking and non-banking subsidiaries. Subject to regulatory approval, the offer will be open for acceptance and application from July 8, 2024, to Aug. 8, 2024.

Shareholder approval and terms of the rights issue

This capital raise follows the approval secured during the group’s second Annual General Meeting (AGM) in April 2024. Shareholders overwhelmingly supported a $1.7-billion capital raising program, with the rights issue acting as a key component.

Under the terms of the rights issue, existing shareholders will be offered 17.773 billion ordinary shares at N19.75 ($0.013) per share, equating to one new share for every two existing ordinary shares held as of June 7, 2024.

“The rights issue is a significant step in delivering our 2023-2027 strategic plan,” said Access Holdings’ acting Managing Director/CEO, Bolaji Agbede. “The additional capital will enable us to maximize emerging opportunities and deliver long-term value to our shareholders.”

Leadership and strategic vision

Aigboje Aig-Imoukhuede, Chairman of Access Holdings, reflected on the company’s journey and paid tribute to the late Herbert Wigwe, a former leader of the group. “This marks the second rights issue for Access Corporation, following the first one in 2002,” he noted. “While this is the first time we present an Access Bank financial instrument without Herbert physically present, his spirit remains a powerful force driving us forward.”

Access Holdings has continued its strategic expansion across Africa’s financial landscape, now boasting a presence in 12 African nations and ventures into European markets. The conglomerate operates as a holding company for a diverse range of financial entities, including banking, asset management, payments, pensions, and insurance. This diversified structure aligns with Aig-Imoukhuede’s vision and is further bolstered by the capital raise.

Aig-Imoukhuede’s return to the helm, following Wigwe’s passing, coincides with the group’s strong financial performance. Access Holdings recorded a staggering 121.85-percent year-on-year profit surge to N159.29 billion ($113.09 million) in the first quarter of 2024, adding further momentum to its growth trajectory.