Access, Zenith, FCMB, Fidelity reject $2.8M subscriptions from investors as CBN deadline nears

The banks cited multiple rights subscription, non-eligible shareholders, and failure to pass the Capital Verification Exercise (CVE) of the Central Bank of Nigeria (CBN).

CBN’s CVE disqualifies N4.84 billion shares

The CVE is a part of the apex bank’s regulatory and supervisory activities to maintain a sound and viable financial industry.

Under the recapitalisation exercise, Zenith Bank, Access Holdings, FCMB, and Fidelity Bank have announced the outcome of their rights issue and public offer on the Nigerian Exchange Limited (NGX).

The four financial institutions raised a cumulative N1.02 trillion from the NGX and voided N4.8 billion subscriptions.

Access Bank, Zenith, and two others raise N1 trillion

According to a ThisDay report, Access Bank raised N351.01 billion and rejected N1.88 billion subscriptions and Zenith Bank raised N350.46 billion and rejected N1.04 billion subscription offers from investors.

The report said that Access Bank revealed 81 applications for 26,775,816 shares worth N528.8 million were invalid and voided.

It disclosed that a total of 68,426,263 shares worth N1,351,418,694.25 were invalid and rejected over non-compliance with the offer terms and are being disqualified by CBN in line with CVE.

Zenith Bank rejects five million shares

Zenith Bank said one application for five million ordinary shares was disqualified by CBN.

Also, about 111 applications for 12 million ordinary shares were declared invalid and rejected, while odd lots amounting to 87,140 ordinary shares were also voided.

The bank stated that about 820 applications for 11.3 million ordinary shares were rejected.

Two applications for 12,528 ordinary shares were rejected as multiple subscriptions and three applications for 18,000 ordinary shares as multiple rights subscriptions were voided.

According to Zenith Bank, 811 applications for 9,418,080 ordinary shares were rejected as applications not verified by the CBN and four applications for 1.9 million ordinary shares were rejected.

FCMB rejects 39 applications

FCMB and Fidelity Bank rejected a total of N1.47 billion and N436.99 million subscription offers respectively.

FCMB disclosed that 39 applications for 200.699 million ordinary shares worth N1.4 billion were voided for not complying with the offer’s terms and are being disqualified by the CBN.

Fidelity Bank rejects 656 applications

Fidelity Bank stated that 458 applications for 22,765.143 ordinary shares worth N221,960,144 million were invalid and rejected.

Also, 548 applications including odds lots amounting to 198,320 ordinary shares were voided.

Fidelity Bank said about 656 applications for 23 million ordinary shares worth N213 million were invalid.

Experts and stock traders said applications are rejected when they do not meet the required standard of completeness.

They say rejection could come from CBN during capital verification when applicants are considered ineligible to own a certain number of shares or involved in suspicious transactions.