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Why is Access Holdings PLC Share price underperforming?



Investors have been curious as to why Access Holdings PLC stock price has been underperforming, both below their expectation and compared to peers on the NGX (Nigerian Stock Exchange). Time was when Access Holdings stock price used to range similarly with United Bank for Africa (UBA) PLC, but as at today the gap between both is more than ₦12. In fact, among the FUGAZ, Accesscorp is the least priced, with Fidelity bank's share price, which is a second tier bank almost catching up with it. This is on the back of their meticulously crafted 5-year strategies which they have religiously been executing in batches since at least 2018, lofty expansion drive across Africa, aggressive growth of their fintech subsidiary, speed of completion of the CBN's recapitalization exercise way ahead of deadline, and the massive revenue and strong balance sheet they have been reporting.

At the 2025 Annual General Shareholders Meeting, shareholders raised the same concern about the share price underperformance, which had the Chairman of the group Aig-Imoukhuede respond, asking shareholders to hold him accountable for it going forward. But ever since then there has not been any significant improvement.

Some of the concerns raised by investors regarding this matter include the below among others:

  • the demise of one of the cofounders and a driving force, Herbert Wigwe, in 2024, and how it could affect performance in the short term.
  • the huge number of shares outstanding at over 53 billion shares.
  • Less than expected (tepid) dividend yield compared to peers.
  • aggressive expansion drive across Africa through Mergers and Acquisitions in line with their strategy. Investors do not seem to be pricing in this growth, even though the company has proven to be a master of M&As.
  • High amount of borrowing and high cost of borrowing, especially FX denominated borrowings.
  • the Additional Tier 1 capital component as reported on their balance sheet, which comprises of Mandatory Convertible Notes convertible to ordinary shares of the company at an agreed future date.

While the chairman had hinted in the last Annual General Shareholders Meeting at the possibility of returning to shareholders in the near future to ask for approval for what might be a downward share reconstruction to comparable share outstanding numbers with peers, it would be necessary to also address the above mentioned investors' concerns and give clarity while restoring investors' confidence in the company. Perception is key, and should not be taken for granted.

Thanks for reading, and Happy Investing! Feel free to drop your comments below. 

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