The Securities and Exchange Commission (SEC) has approved Access Holdings, the Lagos-based financial services company led by Nigerian banker Aigboje Aig-Imoukhuede, to prolong its N351 billion ($229 million) rights issuance until August 23.
The extension was granted in response to disturbances caused by large hunger protests in Nigeria, which had an impact on national economic activity. The rights issue, scheduled to end on August 14, offers 17.773 billion ordinary shares at N19.75 ($0.0124) per share.
As on June 7, shareholders were entitled to one new share for every two they held. Given the recent widespread turmoil, the SEC’s delay seeks to allow stockholders more time to participate in the capital increase.
“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 issued on Tuesday.
He noted that during this time, insider dealings will be limited to participation in the Rights Issue, in accordance with the Non-Dealing Period laws, 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 vital time for Access Holdings, which is pursuing a bold expansion strategy in Africa and beyond. Acting Group CEO Bolaji Agbede emphasised the strategic importance of the rights issue to 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 told Reuters.
Access Bank’s parent firm, Access Holdings, is a diverse financial services conglomerate with a strong presence in 12 African countries and some European markets. Its financial services include banking, asset management, payments, pensions, and insurance.
Access Holdings continues to grow impressively under the leadership of Aigboje Aig-Imoukhuede, who took over when Herbert Wigwe passed away. In the first quarter of 2024, the group’s earnings increased by 121.85 percent year over year, reaching N159.29 billion ($113.09 million).
The group’s strategic choice to lower its stake in Access Bank Botswana aligns with the Botswana Stock Exchange’s listing requirements, demonstrating its commitment to regulatory compliance and operational efficiency. This step demonstrates Access Holdings’ commitment to maintaining the highest governance standards as it pursues its expansion plans.
