Access Holdings has announced the successful outcome of its July 2024 rights issue, reporting an oversubscription rate of 105.76% from 24,181 applications.
On July 8, 2024, Access Holdings opened a significant rights issue, offering 17.77 billion Ordinary Shares at a price of N19.75 each.
This offer, available from July 8 to August 23, 2024, was extended to shareholders who held shares as of June 7, allowing them to purchase one new share for every two shares they owned.
In light of this, Access Holdings has revealed that it received 24,181 applications for a total of 18.82 billion Ordinary Shares, amounting to approximately N371.77 billion and reflecting a 105.76% oversubscription.
Among the submissions, the Central Bank of Nigeria (CBN) validated 24,100 applications for a total of 18.79 billion shares, which are valued at around N371.24 billion.
However, five applicants were disqualified for 41,650,447 shares due to discrepancies highlighted in the Capital Verification Report, resulting in the acceptance of 18.75 billion shares valued at N370.41 billion.
Regrettably, 81 applications for 26,775,816 shares, totaling N528.82 million, were marked invalid. In total, 68,426,263 shares, worth approximately N1.35 billion, were rejected due to compliance issues or disqualification.
What to know
- A total of 21,141 shareholders accepted their full provisional allotment of 5.59 billion shares, totalling N110.45 billion.
- Among these shareholders, 10,889 applied for an extra 10.62 billion shares. They received 9.64 billion fully allocated shares, valued at N190.48 billion.
- Additionally, 2,324 shareholders partially accepted their allotments, totalling 395,647,981 shares worth N7.81 billion.
- On the Nigerian Exchange Limited (NGX), 635 subscribers purchased 2.13 billion shares for N42.26 billion.
In total, 17,772,612,811 shares were allotted, which includes:
- Accepted shares: 5,988,165,688 shares from 23,465 applications, valued at N118.27 billion.
- Shares through traded rights: 2,139,953,954 shares from 635 applications, valued at N42.26 billion.
- Additional fully renounced shares: 9,644,493,169 shares from 10,889 applications, valued at N190.48 billion.
Overall, the Rights Issue was oversubscribed at 105.76%.
Backstory
On July 7, 2024, Access Holdings Plc announced that it received approval from the Securities and Exchange Commission (SEC) for a rights issue of 17.77 billion ordinary shares, priced at N19.75 each.
- This offer allows shareholders to acquire one new share for every two shares held as of June 7, 2024.
At the Signing Ceremony, Bolaji Agbede, the Acting Managing Director/CEO of Access Holdings Plc, mentioned, “The Rights Issue is an important part of our 2023-2027 strategic plan. The capital raised will help us take advantage of new opportunities and provide value to our shareholders.”
- Due to nationwide protests that disrupted business activities across Nigeria, the closing date for the rights issue was extended from August 14 to August 23, following SEC approval.
This extension ensured that all interested shareholders got a fair chance to participate.
