International Breweries Gets SEC Approval To Raise N588bn

International Breweries has received approval from the Securities and Exchange Commission to raise funds through the right issue of 161,172,395,100 to existing shareholders.

The company is issuing the shares to the shareholders at N3.65 per share effectively hoping to raise more than N588bn to save the company where over 5000 direct and indirect jobs are at stake.

“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, on the basis of six new ordinary shares for every one existing ordinary share held,” the brewer said.

SEC approved the application list to open on May 21, 2024, and close on June 10, 2024

When a company sells shares through right issues, only existing shareholders can purchase additional new shares in the company.

International Breweries Plc is grappling with higher input-cost inflation and supply chain disruption as the company has been recording losses in the last five years, but there are no threats to going concern.

For the year ended December 2022, International Breweries posted a loss after tax of N21.62 billion from a loss of N17.65 billion as at December 2021.

International Breweries whose shares traded at N51.82 as of April 23, 2018 now trades at N3.99 as of May 22, 2024, as investors dumped shares over disappointing results and lack of transformation policy on the part of the government.