Access Holdings Plc is launching a new capital raising exercise to raise about N2.3 trillion in a preemptive move to consolidate the group’s position as one of Africa’s leading financial services groups.
The capital raising plan was unveiled yesterday as the group released its audited results and accounts for the 2023 business year, showing 334.8 per cent in pre-tax profit to N729 billion.
In regulatory filings at the Nigerian Exchange (NGX), the board of Access Holdings stated that it would seek approval of the shareholders to raise $1.5 billion and N365 billion in both foreign-denominated and naira-denominated issuances. Shareholders are scheduled to meet at the group’s annual general meeting on April 19, 2024, in Lagos.
The naira appreciated yesterday by 6.4 per cent to N1, 300.43 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
According to the board, shareholders are expected to increase the issued share capital of the company from N17.773 billion of 35.545 billion ordinary shares of 50 Kobo each to N26.659 billion of 53.318 billion ordinary shares of 50 kobo each by the creation of additional 17.773 billion ordinary shares of 50 Kobo, ranking pari-passu with the existing ordinary shares of the company.
The meeting is expected to also approve the election of Mr. Aigboje Aig-Imoukhuede as a non-executive director. Aig-Imoukhuede, the pioneer chief executive of Access Bank Plc, was recently appointed as the chairman of Access Holdings Plc.
The meeting will consider and approve a resolution empowering the board to establish a capital raising programme of up to $1.5 billion or its equivalent, through the issuance of ordinary shares, preference shares, Alternative Tier 1, convertible and/or non-convertible notes, bonds or any other instruments, whether by way of a public offering, private placement, rights issue, book building process or any other method or combination of methods, in such tranches, series or proportions and at such dates, coupon or interest rates within such maturity periods and upon such terms and conditions as may be determined by the board subject to obtaining the requisite regulatory approvals.
Also, shareholders are expected to mandate the company to raise capital of up to N365 billion by way of a rights issue on such terms and conditions and on such dates as may be determined by the directors, subject to obtaining the approvals of the relevant regulatory authorities.
As part of the capital raising process, any shares not taken by existing shareholders within the period stipulated under the rights issue may be offered for sale to other interested shareholders of the company on such terms and conditions as may be determined by the directors subject to the approvals of the relevant regulatory authorities.
Key extracts of the audited report and accounts of Access Holdings for the year ended December 31, 2023 showed that gross earnings grew by 87 per cent from N1.388 trillion in 2022 to N2.595 trillion in 2023. Profit before tax leapt by 334.8 per cent to N729 billion in 2023 as against N167.68 billion in 2022. While income tax expense jumped by 642 per cent from N14.78 billion to N109.68 billion, net profit after tax grew by 306.9 per cent from N152.20 billion in 2022 to N619.32 billion in 2023.
The board of the bank has recommended payment of total dividend of N74.65 billion for the 2023 business year, representing a dividend per share of N2.10. A final dividend of N63.98 billion or N1.80 per share will be paid, in addition to interim dividend of N10.66 billion or 30 kobo per share.
The company’s balance sheet also showed double-digit growths across key parameters. Total assets rose by 77.9 per cent from N14.998 trillion in 2022 to N26.689 trillion in 2023. Total deposits had grown by 75.5 per cent from N11.26 trillion to N19.76 trillion. Shareholders’ funds grew by 77.5 per cent to N2.19 trillion in 2023 as against N1.23 trillion in 2022.
Credit: thenationonlineng.net
