Champion Breweries Rights Issue: Brewer Opens ₦16bn Capital Raise to Fund Bullet Brand Expansion

Champion Breweries Plc has officially opened a ₦16 billion Rights Issue of ordinary shares, priced at ₦16 per share, after securing approvals from the Securities and Exchange Commission and the Nigerian Exchange Limited. The offer, which commenced on Monday, is aimed at existing shareholders and represents a major step in the brewer’s long-term expansion strategy.

The Rights Issue is open to shareholders listed on the company’s register as of the qualification date of September 4, 2025. In total, 994,221,766 ordinary shares of 50 kobo each are being offered, with an allotment basis of one new share for every nine ordinary shares currently held. The offer size stands at approximately ₦15.9 billion.

Proceeds from the capital raise will be applied toward the proposed acquisition of the Bullet portfolio of ready-to-drink beverage brands, subject to regulatory approvals. The acquisition is expected to strengthen Champion Breweries’ pan-African growth platform and expand its product footprint without heavy upfront investment.

The company’s financial performance has shown strong momentum in recent years. Revenue rose from ₦12.7 billion in 2023 to ₦20.9 billion in 2024, while net income climbed from ₦370 million to ₦817 million over the same period. In the first half of 2025 alone, Champion Breweries posted ₦15.9 billion in revenue and ₦2.3 billion in net income, marking its strongest half-year result to date.

Commenting on the offer, Managing Director Inalegwu Adoga said the Rights Issue allows existing shareholders to participate directly in the company’s next growth phase, blending nearly 50 years of heritage with a rapidly expanding pan-African platform. Group Managing Director of enJOYcorp, David Butler, added that the Bullet asset carve-out structure would deliver immediate scale and foreign exchange earnings, while keeping current shareholders central to the company’s transition.

The Rights Issue is being managed by Rand Merchant Bank Nigeria Limited as Lead Issuing House, alongside FBNQuest Merchant Bank Limited, CardinalStone Partners Limited, Investment One Financial Services Limited, and CFG Maynard Limited as Joint Issuing Houses, with Africa Prudential Plc serving as Registrar. Shareholders have been advised to review the Rights Circular and consult professional advisers before participating.

source: punch