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Key Points
- The financial services group has received SEC approval to extend its $229 million rights issue to August 23 due to recent nationwide protests.
- The extension aims to give investors additional time to participate in the capital raise, which will fund the company’s expansion plans.
- Access Holdings reported a 121.85% year-on-year profit surge in Q1 2024, highlighting its robust financial health and growth trajectory.
Access Holdings, the Lagos-based financial services giant led by Nigerian banker Aigboje Aig-Imoukhuede, has received approval from the Securities and Exchange Commission (SEC) to extend its N351bn ($229 million) rights issue until August 23.
The extension was granted following disruptions from widespread hunger protests across Nigeria, which impacted economic activities nationwide. The rights issue, initially slated to conclude on August 14, involves the offering of 17.773 billion ordinary shares at N19. 75 ($0.0124) per share.
Shareholders are entitled to one new share for every two held as of June 7. The SEC’s extension aims to provide shareholders with additional time to participate in the capital raise, given the recent nationwide unrest.
Access Holdings extends rights issue deadline
“The extension responds to the recent nationwide protest that disrupted business operations across Nigeria and ensures shareholders have ample opportunity to exercise their rights,” said Sunday Ekwochi, the Group’s Company Secretary, in a statement released Tuesday.
He added that during this period, insiders dealings will remain restricted to participation in the Rights Issue, adhering to the Non-Dealing Period regulations until 24 hours after the release of the group’s Audited Interim Financial Statements for the Period Ended June 30, 2024.
This development comes at a critical moment for Access Holdings, which is pursuing an ambitious expansion strategy across Africa and beyond. Acting Group Chief Executive Officer Bolaji Agbede highlighted the strategic significance of the rights issue for the group’s growth trajectory. “This rights issue is pivotal not just as a capital raise but as a critical step towards our ambition of ranking among Africa’s top five financial institutions by 2027,” Agbede said.
Aig-Imoukhuede leads Access Holdings to record profits
Access Holdings, the parent company of Access Bank, is a diversified financial services conglomerate with a robust presence across 12 African countries and select European markets. Its operations encompass a wide range of financial services, including banking, asset management, payments, pensions, and insurance.
Under the leadership of Aigboje Aig-Imoukhuede, who assumed the helm following the passing of Herbert Wigwe, Access Holdings continues to achieve remarkable growth. In the first quarter of 2024, the group reported a stellar 121.85 percent year-on-year profit surge, reaching N159.29 billion ($113.09 million).
The group’s strategic decision to reduce its stake in Access Bank Botswana, in line with the Botswana Stock Exchange’s listing requirements, demonstrates its unwavering commitment to regulatory compliance and operational efficiency. This move underscores Access Holdings’ dedication to maintaining the highest standards of governance as it pursues its expansion goals.
