A Review of the Nigerian Energy Industry

Nigeria: Access Bank extends N52.6bn rights issue by two weeks

Herbert Wigwe, MD, Access Bank Plc.
Herbert Wigwe, MD, Access Bank Plc.

07 March 2016, Lagos – Access Bank Plc has extended its Rights Issue by two weeks to March 18, following an approval the bank received from the Securities and Exchange Commission (SEC).

Access Bank Plc’s Rights Issue of 7.627 billion ordinary shares of 50 kobo each at N6.90 had opened on January 26, and was expected to close yesterday. However, the bank said the issue had been extended by two weeks. The extension, according to Access Bank, is due to the need to give shareholders, who are yet to take up their rights more time to do so considering the prevailing economic and political situation.

Access Bank embarked on the capital raising via the right issue to raise N52.6 billion. The proceeds of the issue will be used to boost the bank’s working capital, enhance its information technology and expand branch network, which is expected to ultimately lead to improved performance and returns to investors.

Commenting on the extension, the Group Managing Director of Access Bank, Mr. Herbert Wigwe, urged shareholders of the bank to take advantage of this extension in date to fully exercise their rights, assuring them of quality return on their investments.

“We are going to give good returns on investment as our target is to be among top three banks in 2017,” Wigwe said, disclosing that the bank was already talking to institutional investors, high net-worth investors and individuals, particularly investors who understand the value of long term investments with regard to the issue.

Meanwhile, trading at the stock market continued on a positive note yesterday though the gain was marginal. The Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.05 per cent to close at 30,614.93, while market capitalisation added N4.6 billion to close at N10.2 trillion.

A total of 26 stocks appreciated compared to 22 that dipped in value. International Breweries Plc led the gainers with 5.2 per cent. Union Bank of Nigeria Plc and Portland Paints followed with 5.0 per cent and 4.9 per cent in that order.

Conversely, Wema Bank led the price losers with 5.1 per cent trailed by Champion Breweries and Airline Services and Logistics Plc with 4.8 per cent and 4.7 per cent respectively.

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