Access Holdings Plc has successfully concluded its rights issue, raising N370.41 billion despite the disqualification of 41.65 million shares worth N822.6 million. The disqualified shares, linked to five applicants, were flagged by the Central Bank of Nigeria (CBN) due to discrepancies identified in the Capital Verification Report.
According to a corporate notice filed with the Nigerian Exchange Limited, of the 24,100 applications received for the rights issue, 18,755,158,972 shares, valued at N370.41 billion, were verified and accepted by the CBN as valid. The disqualified 41,650,447 shares, linked to five applicants, were ruled invalid.
The rights issue, offering 17.77 billion shares at N19.75 per share, was oversubscribed by 5.76%. Despite the setback, the issue was deemed successful, with 100% of the shares on offer allotted. A total of 21,141 shareholders fully accepted their provisional allotments, amounting to 5.59 billion shares worth N110.45 billion.
Additionally, 10,889 shareholders applied for an extra 10.63 billion shares, while 9.64 billion rights were fully renounced. The rights issue also saw 2,324 shareholders partially accept their provisional allotments, taking up 395.65 million shares valued at N7.81 billion. Another 635 subscribers purchased 2.14 billion shares, valued at N42.26 billion, through traded rights on the Nigerian Exchange.
Meanwhile, in a separate development, the CBN disqualified 68.43 million shares worth N1.35 billion due to non-compliance with the terms of the offer. Nevertheless, Access Holdings emphasized the strategic significance of the rights issue, highlighting its efforts to bolster its capital base and sustain its leadership in the Nigerian banking sector.
Access Holdings also reported a significant rise in gross earnings, which increased to N3.4 trillion in the first nine months of 2024. This growth was largely driven by a rise in interest income.
The rights issue, which closed on August 23, 2024, saw Access Holdings offer 17,772,612,811 ordinary shares of 50 Kobo each, based on the ratio of one new share for every two existing shares as of June 7, 2024.
Access Bank, the largest bank by asset in Nigeria, is the subsidiary of Access Holdings, and the company continues to make strategic moves aimed at strengthening its position in the financial sector.
