Access Holdings shareholders approve $1.5b capital raising

Alex Omenye
Alex Omenye

Shareholders of Access Holdings Plc endorsed the group’s proposal to establish a capital raising programme of up to $1.5 billion, along with a subset initiative to raise up to N365 billion through a rights issue during the 2nd Annual General Meeting held in Lagos on Friday.

The proceeds from the rights issue are intended to bolster ongoing working capital requirements, including funding for organic growth within its banking and non-banking subsidiaries.

Additionally, shareholders ratified the appointments of Aigboje Aig-Imoukhuede, Olusegun Ogbonnewo, and Ojinika Olaghere as non-executive directors. Aig-Imoukhuede’s appointment as chairman received enthusiastic support from shareholders, citing his past success with the institution, where he played a pivotal role in transforming it into Nigeria’s largest lender by market value alongside the late Herbert Wigwe.

Shareholders lauded Aig-Imoukhuede’s leadership, noting its instrumental role in driving the institution’s growth during the 2004 recapitalisation of the banking industry led by the Central Bank of Nigeria under the leadership of former Governor Prof. Charles Soludo.

Furthermore, in alignment with the Group’s financial performance, shareholders approved the payment of a final dividend of N1.80 kobo per every N0.50 kobo ordinary share for the 2023 financial year, reflecting a 28% improvement from the corresponding period in 2022.

The Group’s full-year results for the period ending December 31, 2023, showcased a remarkable 335% increase in pre-tax profit to N729 billion from N167.68 billion in 2022.

Additionally, the Group experienced an 87% surge in gross earnings to N2.59 trillion from N1.39 trillion in 2022, along with a substantial 306% growth in profit after tax to N619.32 billion from N152.20 billion in 2022.

This strategic move is anticipated to bolster the bank’s capital base, facilitating continued expansion and enhancing its ability to seize emerging opportunities within the financial sector.

Details regarding the planned capital raise were disclosed in a notice distributed via the Nigerian Exchange Group regarding an upcoming Annual General Meeting.

Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *