The Rights Issue of International Breweries Plc (IBPLC), a prominent brewer and a subsidiary of AB InBev, the world’s largest brewing company, has concluded.
Thank you for reading this post, don't forget to subscribe!This offering, which opened on May 21, 2024, and closed on June 10, 2024, aimed to empower shareholders to enhance their ownership stake in IBPLC by subscribing to six new Ordinary Shares for every one existing share held, at an issue price of ₦3.65 per share.
The rights issue attracted significant interest from shareholders, enabling them to participate in IBPLC’s growth journey by increasing their ownership. Moreover, non-shareholders who wished to partake in the offer also acquired traded rights on the Floor of the Nigerian Exchange through their preferred stockbroker, facilitating new investors’ entry into the company.
The net proceeds from the rights issue will be primarily allocated to settle the outstanding US dollar-denominated loan and provide working capital support. This strategic debt reduction underscores IBPLC’s commitment to fortifying its financial position and creating immediate value for shareholders.
David Tomlinson, Finance Director of International Breweries Plc, expressed the company’s dedication to generating sustainable value for shareholders and reinforcing its position in the Nigerian beverage industry. He affirmed, “Together, we will continue to brew success, deliver long-term value for our shareholders, and create a future filled with more cheers.”
The tradability of the rights on the floor of the Nigerian Exchange Group (NGX) ensures liquidity and accessibility for shareholders throughout the offer period. Shareholders can obtain the subscription form from official channels, including www.registrars.apel.com.ng, www.international-breweries.com, and www.chapelhilldenham.com.
During a “Facts Behind the Figures” session discussing the International Breweries rights issue, Jude Chiemeka, the Acting Chief Executive Officer (CEO) of the Nigeria Exchange Group (NGX), reiterated the NGX’s commitment to supporting issuers in maximizing value from their engagements with the market. He emphasized the NGX’s dedication to fostering a fair and orderly market environment tailored to meet investors’ needs.
The commencement of the rights issue follows approval received during an Extra-Ordinary General Meeting (EGM) on February 12, 2024, reflecting shareholders’ anticipation and endorsement of initiatives aimed at supporting IBPLC’s growth objectives.
