Yesterday, Access Bank (Buy,
target price: N7.69/s, current price: N4.20/s) announced that its
one-for-three rights issue concluded early this year, was 79.3% subscribed,
leading to an estimated shortfall of N10.9bn (US$54.6m). Following a tier 2
capital raise through its $400.0m seven year debt issue last year, the bank
planned to create additional capital buffers through N52.6bn (US$263.2m) rights
offering.
At N6.90/s, the rights were
offered at a 16.8% premium to the bank’s average share price of N5.9/s during
the issue period, and we believe this might have been a disincentive for taking
up rights.
The bank reported CAR of
19.6% for Q1 2015, which is comfortably above the regulatory requirement of
16.0%.
No comments:
Post a Comment