Access Holdings Plc in a bid to shore-up its share capital to N500 billion as required by the Central Bank of Nigeria, recently launched its Rights Issue offer of 17,772,612,811 Ordinary Shares of N0.50 each at N19.75 per share. The Rights Issue is on the basis of 1 Ordinary Share for every 2 Ordinary Shares.
The offer opened on Monday, July 8, 2024, and will close on Wednesday, August 14, 2024. The Qualification Date for the Rights Issue is June 7, 2024.
Access Holdings share capital stands at N251.811 billion. To meet the CBN’s N500 billion minimum capital requirement, the bank requires an additional N248.189 billion.
The financial institution over the years have recorded consistent growth in its top line and bottom line figures.
In the last past five years, the share price of ACCESS has grown by about 136%. Looking at its share price of N8.30 from August 1, 2022 to the share price of N19.60 as at August 9, 2024, the Bank’s share price significantly grew by 136.14%.
With the Earnings per share of N17.42 as at FY 2023, at the share price of N19.60, the P/E ratio of ACCESS at 1.12x and a mouth-watering earnings yield of 88.90% makes it the most attractive banking stock.
With the Book Value of N61.49 relative to the current share of N19.60 is a clear indication that the stock is grossly underpriced and it is loaded with great upside potentials.
In 2023, Access Holdings emerged with the highest turnover in the Banking Sector with Gross Earnings of N2.595 trillion, up by 86.95% from N1.388 trillion reported in FY 2022.
Profit after tax grew year on year by 306.91% to N619.3 billion from N152.2 billion reported the previous year, emerging top in terms of PAT growth.
First Quarter report of the Financial Institution shows significant growth in its top line and bottom line figures with Gross Earnings of N974 billion in 3 months.
The Holding Company recently notified the investing public of a possibility of interim dividend when the Half Year 2024 results is approved by CBN.
The Rights Issue offer will close on Wednesday, August 14, 2024.