According to a document
released by the bank some days ago which was made available to Tectono
Business Review, the rights issue was 79.3 percent subscribed by
shareholders and came in below its target of 52.6 billion naira. The bank had
offered 7.62 billion shares at 6.90 naira per share to its existing
shareholders at one for three shares in a rights issue in January. Investors
cheered the rights issue, sending the lender’s shares 2.44 percent higher to
4.20 naira per share.
Mr.
Soji Solanke, a banking
analyst at Renaissance Capital,
said: “It was great news that the bank was able to get
away with a decent result considering the extreme tough market conditions
prevalent at the time of the offer.”
According to Mr. Solanke, many
offshore investors are averse to risk in Nigeria as a result of falling oil
prices and unresolved issues around the value of the local naira currency.
He said: “Many investors actually expect that the naira should be
weaker and this constrained investment flow to the economy.”
The central bank in
February pegged the currency at the rate of 197 to the dollar to prevent it
from falling in tandem with global oil prices. Access bank had previously said
it plans to increase lending to the small business sector and retail segment of
Nigeria’s economy from the proceeds of the rights issue.
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