Access Holdings (parent company of Access Bank Ltd) is set to complete its N500 billion recapitalization for Access Bank Limited, ahead of other banks in Nigeria.
This is contained in a report detailing the corporate giant’s earnings from its rights issue.
According to the report the group attracted a total subscription of N371.8 billion on its rights issue, representing a 105.76 percent oversubscription.
The bank had set a target to raise N351 but has so far raised N371 billion from its rights issue.
Access Holdings has arranged to issue another 17.773 billion shares will be allotted to shareholders before January 10, 2025.
The funds raised will boost Access Banks’ market capitalization to approximately N602.8 billion, making it the first bank to complete its N500 billion recapitalization made mandatory by the Central Bank of Nigeria (CBN).
The completion of its ongoing rights issue will also increase Access Holdings’ total issued shares to around 53.318 billion shares.
With Access Holdings’ current share price at N24.7 per share as of December 24, this translates to a total market capitalization of N1.32 trillion on the Nigerian Exchange (NGX).
It was noted that the group received about 24,181 applications for its latest offer of shares and has processed 100% of the applications received.
The sales of 41,650,447 shares from five applicants valued at N822.6 million were disapproved by the CBN for its contravention of regulations stated in the Capital Verification Report.
The sales of 18,755,158,972 shares, valued at ₦370.4 billion, received approval after successfully passing required verifications as detailed in the Capital Verification Report.
Additional information made available to 9am News Nigeria shows that in its penultimate shares offer, 81 applications for the purchase of 26,775,816 shares, valued at N528.8 million, were found to be invalid and consequently rejected.
In total, invalid shares stood at 68,426,263 valued at N1.35 billion. These shares were deemed invalid and rejected either for non-compliance with the terms of the offer or for failing to meet CBN’s Capital Verification requirements.
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