CBN Disqualifies N822.6m in Access Holdings Rights Issue Amid Strong Oversubscription
The Central Bank of Nigeria (CBN) has disqualified 41.65 million shares, valued at ₦822.60 million, in Access Holdings Plc’s recently concluded rights issue. The disqualification, linked to five applicants, was flagged in the Capital Verification Report, according to a corporate notice filed on Wednesday with the Nigerian Exchange Limited.
“41,650,447 shares from five applicants among the 24,100 acceptances, valued at ₦822,596,328.25, were disqualified by the Central Bank of Nigeria for reasons stated in the Capital Verification Report. Therefore, 18,755,158,972 shares valued at ₦370.41bn were accepted, having been confirmed as valid and verified by the CBN,” the statement disclosed.
Despite this setback, Access Holdings described the rights issue as a success, with the company achieving 100% allotment of the 17.77 billion shares offered. The issue, priced at ₦19.75 per share, was oversubscribed by 5.76%, with 18.82 billion applications received, valued at ₦371.77 billion. Of this, 18.76 billion shares worth ₦370.41 billion were verified and accepted.
The breakdown of the subscription process revealed a robust response from shareholders:
21,141 shareholders fully accepted their provisional allotments, accounting for 5.59 billion shares worth ₦110.45 billion.
10,889 shareholders applied for an additional 10.63 billion shares.
2,324 shareholders partially accepted their allotments, taking up 395.65 million shares valued at ₦7.81 billion.
635 subscribers purchased 2.14 billion shares worth ₦42.26 billion through traded rights on the Nigerian Exchange.
However, Access Holdings also invalidated 68.43 million shares, valued at ₦1.35 billion, due to non-compliance with offer terms or disqualification by the CBN.
The rights issue is a pivotal step in Access Holdings’ strategic effort to strengthen its capital base. “This marks a significant milestone as we continue to bolster our financial position and maintain leadership in Nigeria’s banking sector,” the company said in its statement.
Access Holdings’ financial trajectory remains strong, with gross earnings soaring to ₦3.4 trillion in the first nine months of 2024—a 114.5% increase year-on-year from ₦1.6 trillion in 2023. The surge was largely driven by higher interest income, reinforcing the company’s status as Nigeria’s largest bank by assets.
The rights issue, which opened on July 8 and closed on August 23, offered one new ordinary share for every two ordinary shares held as of June 7, 2024. The capital raised is expected to fuel Access Holdings’ expansion and reinforce its market leadership amid an evolving financial landscape.
