• Monday, June 24, 2024
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SEC approves International Breweries N588bn Rights Issue

SEC approves International Breweries N588bn Rights Issue

Nigeria’s Securities and Exchange Commission (SEC) has approved for International Breweries Plc to raise funds by way of rights issue.

This means that the company will sell the agreed number of shares amounting to N588billion to only existing shareholders.

International Breweries Plc will 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 (6) new ordinary shares for every one (1) existing ordinary share held.

The Qualification Date for the Rights Issue is May 2, 2024. The application list opened on May 21, 2024, and will close on June 10, 2024 as approved by the Commission.

The Rights circular will be distributed to shareholders by the Company’s Registrars, while application forms will also be made available on the websites of the Company and the Registrars for ease of access.

“International Breweries demonstrated a robust topline performance in first quarter (Q1) 2024, with a notable 90percent year-on-year (y/y) rise in revenue, reaching N103.2 billion. This substantial growth was underpinned by higher prices amid reduced volumes, a trend seen across the brewery space.

“Despite the significant price increases, International Breweries products are still the lowest priced in the market. On the cost front, the firm recorded a faster rise in cost of sales (+99percent y/y) to N74.4 billion. As a result, we saw gross margins decline by 3percent y/y to 28percent (Q1’23: 31percent). Given this, gross profit growth slowed to 69percent y/y, to print at N28.9billion”, Vetiva Research analysts said recently.