The International Breweries Plc has revealed that it has gotten the approval of the Nigerian Securities and Exchange Commission for a ‘Right Issue’, an invitation to existing shareholders to purchase additional new shares in the company.
The company disclosed this in a statement signed by its Secretary, Marian Reginald-Ukwuoma, recently. According to the statement, the rights issue would offer 161,172,395,100 ordinary shares at two Kobo each at N3.65 per share valued at N588.28 billion.
“International Breweries Plc is pleased to notify its esteemed Shareholders, Stakeholders, Nigerian Exchange Limited, and the general public, that the Company has obtained approval from the Securities Exchange Commission to offer to the shareholders the proposed Rights Issue of 161,172,395,100 Ordinary Shares of 2 Kobo each at N3.65 Per Share, based on six (6) new ordinary shares for every one (1) existing ordinary share held,” the statement reads in part.
It also stated that the qualification date for the rights issue was May 2, 2024, while the application list opened on May 21 and would close on June 10.
Shareholders of International Breweries had in February this year approved the company’s request to raise additional equity capital through a rights issue to existing shareholders.
The rights issue will help the company re-strategize its operations buffeted by the foreign exchange unification, which led to huge revaluation losses reported last year.
International Breweries has been facing escalating financial losses over the past half-decade, as reported by The ICIR in August 2023 that the consumer goods company despite revenue posted losses across various margins.
In its 2023 financial results, the company posted a loss after tax of N87.64 billion from the N26.84 billion loss reported in 2022.
Its loan portfolio also stood at N374.34 billion. Notably, a $424 million loan from Citi Bank in 2018, with an outstanding balance of $389.08 million (2022: $309 million), was rolled over in 2021 for an additional three-year period. The move to raise the rights issue is a strategic plan to address its financial difficulties.