Nigerian Breweries expands share capital to bolster financial stability  

Nigerian Breweries Plc has strengthened its financial position with the successful listing of 20.7 billion new ordinary shares on the Nigerian Exchange Limited (NGX). This move, announced by the company’s secretary, Uaboi Agbebaku, marks a strategic milestone in the firm’s capital restructuring efforts.

The newly listed shares, which emerged from the company’s recent rights issue, bring Nigerian Breweries’ total outstanding shares to 30.98 billion. The rights issue offered 22.6 billion ordinary shares at N26.50 per share, raising approximately N600 billion to address key financial challenges, including foreign exchange losses and high-interest local debt.

In a statement filed on Tuesday, Agbebaku noted, “Nigerian Breweries Plc (the ‘Company”) is pleased to notify its esteemed shareholders and the trading public that the allotted 20,706,894,542 ordinary shares of 50 Kobo each (arising from the Company’s Rights Issue of 22,607,491,232 ordinary shares of 50 Kobo each at N26.50 per share) were formally listed on the Daily Official List of the Nigerian Exchange Limited today, Monday, December 30, 2024.

“With this listing, the total outstanding shares of the company listed on the NGX have now increased from 10,276,132,378 ordinary shares to 30,983,026,920 ordinary shares of 50 Kobo each.”

This significant capital increase aligns with Nigerian Breweries’ strategy to mitigate the impact of Nigeria’s challenging economic environment, particularly the Central Bank’s 26 per cent monetary policy rate. By raising funds through equity rather than additional debt, the company aims to reduce its financial leverage and strengthen its balance sheet.

The rights issue is part of a broader plan unveiled in September to reduce forex losses and lower the company’s reliance on expensive local borrowing. With this successful listing, Nigerian Breweries demonstrates its commitment to long-term growth and shareholder value amid the evolving economic landscape.

The development is expected to enhance investor confidence and solidify Nigerian Breweries’ position as a leading player in the Nigerian capital market.

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