Access Holdings Plc, the parent company of Nigeria’s largest bank by assets, has announced an extension to the deadline for its ongoing ₦351 billion ($233 million) capital raise, a decision influenced by the recent nationwide protests. The capital raise, initially set to close on August 14, 2024, will now run until August 23, 2024, following approval from the Securities & Exchange Commission (SEC), as disclosed in a regulatory filing on Tuesday.
This extension comes at a critical time for Access Holdings, as it seeks to solidify its position as a leading global financial institution with African roots. The company is offering 17.7 billion new ordinary shares at ₦19.75 each, with the raised funds earmarked for several strategic initiatives. Specifically, Access Holdings plans to allocate 65% of the proceeds to expand its loan book, 20% to upgrade its infrastructure, and the remaining 15% will be used to establish new branches across Nigeria.
The decision to extend the capital raise deadline is not isolated but is part of a broader trend among Nigerian banks to bolster their capital bases in response to new requirements set by the Central Bank of Nigeria (CBN). Just a day before this announcement, Zenith Bank, Nigeria’s largest bank by market capitalization, launched its combined offer to raise ₦290 billion ($182 million). Similarly, Fidelity Bank and GTCO recently closed their public offers on August 12, 2024.
Access Holdings has been on an aggressive growth trajectory over the past two decades, transforming from a mid-sized lender into Africa’s largest bank through a series of strategic acquisitions. Today, the bank operates in 18 countries and has set its sights on becoming the world’s first truly African global brand in the financial sector.
The extension also coincides with a challenging period for Nigeria’s financial industry, marked by economic instability and widespread protests. By extending the deadline, Access Holdings aims to ensure that shareholders have sufficient time to subscribe to their rights amidst these disruptions. The company also emphasized that during this extended period, dealings by insiders will remain strictly limited to participation in the Rights Issue, in line with earlier approvals from the Exchange regarding the Non-Dealing Period related to the company’s Audited Interim Financial Statements for the period ending June 30, 2024.
As Access Holdings continues its capital raise, the bank’s strategy reflects the growing competitiveness and evolving regulatory landscape of Nigeria’s banking sector. With this extension, Access Holdings is positioning itself to not only meet immediate capital requirements but also to drive long-term growth and innovation across its operations.