Access Holdings has received the approval of the Securities and Exchange Commission to extend its ongoing rights issue programme to August 23. The offer was initially due to close on August 14.
According to disclosures by the group on the NGX website, the extension was made to give shareholders additional time to subscribe to their rights. It was an appropriate response to the recent nationwide protests that disrupted businesses and daily activities across Nigeria.
Access Holdings is presently carrying out a N351 billion rights issue programme which began on July 8, 2024. The group is issuing 17,772,612,811 ordinary shares at the rate of two new shares for every share held by existing shareholders. The offer price for the rights issue is N19.75.
On July 8, Access Holdings was trading at N19.60, then, the share price declined further, going as low as N18.30 on July 31. However, from the beginning of August, the share price has been trying to make a resurgence above the rights issue price.
In defending the rights issue share price, the Chairman of Access Holdings, Aigboje Aig-Imoukhuede noted that Access Holdings’ earning potentials warranted such a valuation.
He noted during the bank’s “Facts Behind the Issue” presentation, “Currently, the analysis shows a potential earnings value of about 17 naira per share, with a trading price of around 19.75 naira per share. This is not a bank that needs further reinvestment to make that money, meaning it won’t seek additional capital that could dilute its earnings.”
To market its rights issue, Access Holdings took a different approach by trying to tap the influence of social media. The group tried a Twitter campaign utilizing influencers, however, not without drawing the anger of some commentators.