{"id":21551,"date":"2024-12-27T11:28:29","date_gmt":"2024-12-27T11:28:29","guid":{"rendered":"https:\/\/theblogonline.com\/?p=21551"},"modified":"2024-12-27T11:32:25","modified_gmt":"2024-12-27T11:32:25","slug":"cbn-disqualifies-over-41-million-shares-in-access-holdings-n371bn-rights-issue","status":"publish","type":"post","link":"https:\/\/theblogonline.com\/?p=21551","title":{"rendered":"CBN Disqualifies Over 41 Million Shares in Access Holdings\u2019 N371bn Rights Issue"},"content":{"rendered":"

The Central Bank of Nigeria<\/a> (CBN) has disqualified 41.65 million shares valued at N822.60 million in Access Holdings Plc<\/a>\u2019s recently concluded rights issue, citing reasons detailed in the Capital Verification Report.<\/p>\n

The disqualified shares, linked to five applicants, were part of the applications received for the offer.<\/span><\/p>\n

In a corporate notice filed on the Nigerian Exchange Limited on Wednesday, Access Holdings confirmed that out of 24,181 applications received for 18.82 billion shares worth N371.77 billion, 18.76 billion shares valued at N370.41 billion were verified and accepted by the CBN<\/a>. <\/span><\/p>\n

Despite the disqualification, the company declared the rights issue successful, with 100% of the shares on offer allotted to shareholders.<\/span><\/p>\n

Breakdown of the Rights Issue<\/b><\/span><\/p>\n

The rights issue offered 17.77 billion shares at N19.75 per share, raising N371.77 billion, and was oversubscribed by 5.76%. Of the total shares, 21,141 shareholders fully accepted their provisional allotments, totaling 5.59 billion shares worth N110.45 billion.<\/span><\/p>\n

Additionally<\/b>:<\/span><\/p>\n

\u2022 Extra Applications: 10,889 shareholders applied for an additional 10.63 billion shares.<\/span><\/p>\n

\u2022 Partially Accepted Allotments: 2,324 shareholders took up 395.65 million shares worth N7.81 billion.<\/span><\/p>\n

\u2022 Renounced Rights: 9.64 billion rights were renounced entirely.<\/span><\/p>\n

\u2022 Traded Rights: 635 subscribers purchased 2.14 billion shares through traded rights on the Nigerian Exchange, valued at N42.26 billion.<\/span><\/p>\n

However, aside from the 41.65 million shares disqualified by the CBN, another 68.43 million shares worth N1.35 billion were invalidated due to non-compliance with the offer terms.<\/span><\/p>\n

Strengthening Capital Base<\/b><\/span><\/p>\n

Access Holdings emphasized that the successful rights issue represents a significant milestone in its efforts to bolster its capital base and maintain its leadership position in the Nigerian banking sector.<\/span><\/p>\n

\u201cThis rights issue is a testament to our commitment to providing long-term value to our shareholders while strengthening our position as a leading player in the financial services industry,\u201d the company stated.<\/span><\/p>\n

Strong Financial Performance<\/b><\/span><\/p>\n

The announcement of the rights issue results follows Access Holdings\u2019 impressive financial performance in 2024. <\/span><\/p>\n

The company reported a 114.5% year-on-year increase in gross earnings, rising from N1.6 trillion in the first nine months of 2023 to N3.4 trillion in 2024. <\/span><\/p>\n

This growth was attributed to a surge in interest income, solidifying Access Holdings\u2019 position as the parent company of Nigeria\u2019s largest bank by assets, Access Bank.<\/span><\/p>\n

Details of the Offer<\/b><\/span><\/p>\n

The rights issue, which was based on one new ordinary share for every two ordinary shares held as of June 7, 2024, opened on July 8 and closed on August 23, 2024.<\/span><\/p>\n

While the disqualification of shares highlights the rigorous oversight of the CBN, the overall success of the rights issue underscores Access Holdings\u2019 capacity to attract shareholder confidence and navigate Nigeria\u2019s dynamic banking landscape.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The Central Bank of Nigeria (CBN) has disqualified 41.65 million shares valued at N822.60 million in Access Holdings Plc\u2019s recently concluded rights issue, citing reasons detailed in the Capital Verification Report.<\/p>\n","protected":false},"author":1,"featured_media":21552,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[9830,8441,131,9829,9831],"class_list":["post-21551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-41-million-shares","tag-access-holdings","tag-cbn","tag-disqualifies","tag-n371bn-rights-issue"],"_links":{"self":[{"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/posts\/21551"}],"collection":[{"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/theblogonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21551"}],"version-history":[{"count":4,"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/posts\/21551\/revisions"}],"predecessor-version":[{"id":21556,"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/posts\/21551\/revisions\/21556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theblogonline.com\/index.php?rest_route=\/wp\/v2\/media\/21552"}],"wp:attachment":[{"href":"https:\/\/theblogonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theblogonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theblogonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}