International Breweries Plc Launches N161.17bn Rights Issue
International Breweries Plc, a subsidiary of AB InBev, has announced a rights issue to raise fresh capital amounting to N161.17 billion. The rights issue will be tradable on the floor of the Nigerian Exchange Limited (NGX) throughout its duration, ensuring liquidity and accessibility for shareholders.
Priced at N3.65 per share, this strategic initiative offers shareholders the chance to increase their equity holdings while supporting the company’s growth and deleveraging efforts. International Breweries, known for producing Trophy Lager, Budweiser, Hero Lager, Trophy Extra Stout, Flying Fish, Castle Lite, Beta Malt, and Grand Malt, aims to bolster its financial standing and market presence through this capital raise.
David Tomlinson, the Finance Director of International Breweries, expressed confidence in the rights issue, highlighting it as a compelling opportunity for shareholders. “We are pleased to announce the International Breweries Plc rights issue offering, which presents a convincing opportunity for our valued shareholders to further participate in the growth and success of our company,” he stated.
With a rights ratio of six new ordinary shares for every one held and an offer price of N3.65 per share, the company aims to provide shareholders with access to additional equity at an attractive valuation. “This offering underscores our commitment to creating value for our shareholders while fortifying our position in the Nigerian beverage industry. We encourage all shareholders to seize this opportunity to participate in the growth story of our dynamic business. Together, we will continue to brew success, deliver long-term value for our shareholders, and create a future with more shares,” Tomlinson elaborated.
Jude Chiemeka, the acting CEO of NGX, affirmed the exchange’s support for issuers. “At the NGX, we remain committed to helping issuers derive great value from their interactions with the market. By positioning ourselves as the African exchange of choice, we will continue to adopt rules aimed at improving the corporate governance of our listed firms and offer products and services that are tailored to the needs of investors in a fair and orderly market,” Chiemeka noted.
The rights issue marks a significant step for International Breweries in its mission to solidify its market presence and enhance shareholder value amidst a competitive industry landscape.
