Access Bank plc has concluded plans to raise an estimated N51.13 billion through the offer of Right Issue of 7,627,639,636 ordinary shares of 50 kobo each on the basis of one new share for every existing three held at N6.90.
According to the offer document, an estimated net proceeds of N51,132,471,586 is expected from the Rights Issue after deducting the total costs of the Issue estimated at N1.498 billion, representing 2.86 per cent of gross issue proceeds.
will be applied as follows: Use of Proceeds Amount (N) % Completion period
the document went further to indicate that N10.37 billion, about 20.22 per cent of the total proceeds will be expended on branch expansion and facility upgrade. It said the project will be completed in 36 months.
Another N11.25 billion, 22 per cent of total proceed will be invested on replacement of obsolete infrastructure and equipment, to be completed in 18 months, while N4.12 billion, 8.06 per cent of total proceed will go into upgrade of distribution channels. It said that phase will be completed in 24 months.
Another N4.27 billion, about 8.35 per cent of total proceeds will be invested on IT and Systems Upgrade. Project is expected to be completed in 24 months, while N2.53 billion, 4.95 per cent of total proceeds will go into international expansion, to be completed in 36 months.
The bank plans to keep N18.59 billion, about 36.36 per cent of total proceeds as its working capital. The bank plans to expend the money in 24 months.
The issuing houses are Chapel Hill Advisory Partners, Marina Securities, Stanbic IBTC Capital, Renaissance Securities (Nigeria) Limited, Vetiva Capital Management Limited, Greenwich Trust Limited, Futureview Financial Services Securities Limited and WSTC Financial Services Limited.
Authorised share capital of the bank is 20,000,000,000 comprising 38,000,000,000 Ordinary Shares of N0.50 each and 2,000,000,000 Preference Shares of N0.50
Issued and fully paid is N11,441,459,454 comprising 22,882,918,908 Ordinary Shares of N0.50 each.