International Breweries Gets SEC Nod for N588 Billion Rights Issue to Ease Debt Burden

International Breweries has secured approval from the Nigerian Securities Exchange Commission (SEC) to proceed with its planned rights issue. This fundraising effort aims to raise N588.3 billion to address the company’s mounting debt.

The rights issue will involve offering shareholders the opportunity to purchase new shares at a discounted price. Existing shareholders will be able to subscribe for six new shares for every one share they currently hold. The application window is open from May 21st to June 10th, 2024.

International Breweries has been struggling financially in recent years, despite experiencing revenue growth. The company recorded a significant pre-tax loss in 2023 and has a large loan portfolio. This rights issue is a critical step in their plan to manage their debt burden and secure their financial future. The funds raised will be used to repay a significant loan from Citi Bank and potentially fund additional share purchases by AB InBev, a major stakeholder.