Shareholders to Benefit from International Breweries’ Rights Issue

Ferdinand Ekechukwu

International Breweries Plc (IBPLC), a leading brewer and part of AB InBev, the largest brewer in the world, has announced the launch of its rights issue of 161,172,395,100 shares, providing a unique opportunity for shareholders and non-shareholders to participate in the growth and success of the company.

The rights issue which opened on May 21, 2024, and closes on June 10, 2024, allows 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 N3.65 per share.

In addition, non-shareholders who desire to participate in the offer can do so by purchasing traded rights on the floor of the Nigerian Exchange through their preferred stockbroker, providing an opportunity for new investors to join the company’s growth journey.

The net proceeds from the rights issue would primarily be used to settle the outstanding US dollar-denominated loan and provide working capital support, demonstrating IBPLC’s commitment to strategic debt reduction and creating immediate value for shareholders.

“We are committed to creating sustainable value for our shareholders while fortifying our position in the Nigerian beverage industry. Together we will continue to brew success, deliver long-term value for our shareholders, and create a future with more cheers,” said David Tomlinson, Finance Director of International Breweries Plc.

The tradability of the rights on the floor of the Nigerian Exchange Group (NGX) ensures liquidity and accessibility for shareholders throughout the duration of the offer. Shareholders can download the form from official channels.

Speaking during a ‘Facts Behind the Figures’ session to discuss the International Breweries rights issue, the Acting Chief Executive Officer (CEO) of the Nigeria Exchange Group (NGX), Jude Chiemeka, said “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.”