Abbey Mortgage Bank Seeks N3.0bn Equity Funds

By Dipo Olowookere

The board of Abbey Mortgage Bank Plc is seeking to raise about N3.0 billion through equity and this would be done by selling rights issue to shareholders.

However, before this can be done, the financial institution is seeking the approval of the Nigerian Stock Exchange (NSE). Also, it is requesting from the exchange to have the shares listed on its trading platform after the exercise.

A notice from the NSE said it received the company’s application for the rights issue through its stockbroker, Anchoria Investment and Securities Limited.

In its request, Abbey Mortgage Bank said it intends to offer for sale a total of 3,692,307,691 ordinary shares of 50 kobo each at 82 kobo each to shareholders.

The company further said these equities would be offered on the basis of four new ordinary shares for every seven ordinary shares held as at the close of business on Thursday, October 8, 2020.

“Dealing members are hereby notified that Abbey Mortgage Bank Plc has through its stockbroker, Anchoria Investment and Securities Limited, submitted an application to the Nigerian Stock Exchange (NSE) for the approval and listing of a rights issue of 3,692,307,691 ordinary shares of 50 kobo each at 82 kobo per share, on the basis of four new ordinary shares for every seven ordinary shares held. The qualification date for the rights issue is Thursday, October 8, 2020,” the disclosure stated.

Business Post reports that shares of Abbey Mortgage Bank traded flat on the exchange on Tuesday at N1.05 per unit.

Abbey Mortgage Bank is a primary mortgage bank with a licence from the Central Bank of Nigeria (CBN) to provide banking services in personal savings and investments, cash management, specialized banking, deposit and funds management, children and school account services, real estate and mortgage services, amongst others.

It also engages in loans, mortgages and banking services to corporate and individual customers and the firm said it is passionately involved in providing shelter to its customers being an accredited PMB for the National Housing Fund (NHF) and a subscriber to the recently created Nigerian Mortgage Refinance Company Plc (NMRC).