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. This development was disclosed in a corporate notice filed on the Nigerian Exchange Limited (NGX) on Wednesday. The disqualified shares, linked to five applicants, were flagged based on findings in the Capital Verification Report.
Overview of the Disqualification
According to the statement, the CBN invalidated shares associated with five out of the 24,100 acceptances received. A total of 41,650,447 shares valued at ₦822,596,328.25 were disqualified. Despite this setback, the Rights Issue saw significant success, with 18.76 billion shares worth ₦370.41 billion validated and accepted as confirmed in the Capital Verification Report.
Successful Rights Issue and Oversubscription
Access Holdings achieved a 100% allotment of the shares offered. Out of 24,181 applications received for 18.82 billion shares valued at ₦371.77 billion, 18.76 billion shares were verified as valid and accepted. The Rights Issue, which offered 17.77 billion shares at ₦19.75 per share, was oversubscribed by 5.76%.
Breakdown of Share Allotments
Access Holdings provided a detailed breakdown of the Rights Issue:
- 21,141 shareholders fully accepted their provisional allotments, totaling 5.59 billion shares valued at ₦110.45 billion.
- 10,889 shareholders applied for additional shares, requesting 10.63 billion shares.
- 2,324 shareholders partially accepted their provisional allotments, taking up 395.65 million shares worth ₦7.81 billion.
- 635 subscribers purchased 2.14 billion shares through traded Rights on the NGX, valued at ₦42.26 billion.
- 9.64 billion Rights were fully renounced during the process.
Invalid Shares
In addition to the CBN’s disqualification of 41.65 million shares, another 68.43 million shares, valued at ₦1.35 billion, were invalidated due to non-compliance with the terms of the offer or other disqualifications.
Conclusion
Despite the disqualification of some shares, Access Holdings reported the Rights Issue as a success, with strong participation from shareholders and an oversubscription that underscores investor confidence in the company’s prospects. The Rights Issue demonstrates Access Holdings’ robust market presence and its ability to mobilize significant capital for future growth initiatives.