• Wednesday, July 24, 2024
businessday logo

BusinessDay

Access Holdings hints of US expansion as NGX, shareholders see rights issue oversubscribed

Access Bank commits to building intergenerational wealth

Access Holdings Plc on Tuesday hinted of intention to expand to the US as part of its expansion programme in the near future, as Nigerian Exchange Group (NGX) and shareholders expect the Institution’s rights issue to be oversubscribed.

Roosevelt Ogbonna, managing director of Access Banking Plc, gave this hint while addressing capital market shareholders with Facts behind the Rights Issue presentation, at NGX in Lagos.

Access Holdings Plc on June 2, 2024, formally signed an agreement as part of the arrangements to raise a total of N351.00 by way of a Rights Issue.

Read also: Access Holdings moves to raise N351bn by way of rights issue

The offer is part of the Group’s strategy to enhance its working capital requirements, which includes organic growth funding for its banking and non-banking subsidiaries.

“I believe the success of this offer to be oversubscribed is a done deal,” said, Umaru Kwairanga, group chairman, NGX Group, adding, “Access Holdings I believe is a future case study for the best business schools in the world on how to build a world class bank in a very short period and keep it going.

Ahonsi Unuigbe, Chairman of NGX, highlighted that despite current economic challenges, the Nigerian Exchange Limited acknowledges Access Holdings’ concerted efforts. These efforts have notably bolstered the capital adequacy ratio of its flagship subsidiary, Access Bank, demonstrating robust capital buffers compliant with Basel III standards. This foundation is crucial for withstanding economic shocks, ensuring business continuity, and fostering investor confidence. The evolution of Access Bank into Access Holdings reflects a journey marked by vision, leadership, and strategic growth.

According to him, when the bank was acquired over 20 years ago, the mandate was clear to grow the bank from this position at the largest bank to the top 10 within five years.

Read also: Access Holdings calls for responsible use of AI in banking sector

Aigboje Aig-Imoukhuede, Group Chairman of Access Holdings, emphasised that the Rights Issue marks the beginning of several financial initiatives aimed at supporting the institution’s comprehensive expansion strategy.

“So, our Rights Issue is not just a financial exercise but a continuation of the Access Bank story. If I was given the opportunity to see capital market raising exercises, I would call them promises kept since 2002. The commitment then was to raise it from 70th to the top 10 within five years. I believe the promise was kept.”

All the shareholders who spoke at the event promised their rights. Adebisi Olanrewaju Bakare, national coordinator at pragmatic shareholders association, said, “that was a very good presentation. From Access bank to Access Holdings is a company of fulfilling promise. We are going to take our rights. I am giving you assurance.”

Boniface Okezie, national coordinator, Progressive Shareholders Association of Nigeria (PSAN), said “Access Holdings has what it takes to get good returns. The 19.75k per share is a bonanza to existing shareholders.”