The International Breweries plc opened their Rights Issue of 161,172,395,100 ordinary shares of 2kobo each by way of rights, with a conversion of six (6) new ordinary shares for every one (1) ordinary share held as at the close of business on May 2, 2024, at a price of N3.65 per share.

What Does This Mean?

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company at a discount price. This means that investors with shares in International Breweries before May 2, 2024, are entitled to participate in these rights at the conversion rate of six (6) for one (1) ordinary share.

For example, an investor with 1000 units of International Breweries as at the qualification date with a 6 for 1 conversion rate would be entitled to buy 6000 units at N3.65. That is (1000/1) x 6! There are no fractional shares in the Nigerian market so decimals should be rounded down. This IntBrew investor needs to prepare 6000 x N3.65 = N 21,900 to take up the right.

Requisite approvals have been sought from the Central Bank of Nigeria, the Securities and Exchange Commission and the Nigerian Exchange Limited for the registration and subsequent listing of the shares now being issued.

What Next?

Investors who qualify for the scheme can take up their rights. Kindly note that as at close of market on Tuesday, 21st May, the market price of International Breweries was N3.99, which means that there is a 34kobo premium on the rights price.

While this is good news for the shareholders this applies to, the issuance is time bound as it is scheduled to close on Monday, June 10, 2024.

Kindly click here for Rights Circular and here to apply for the Rights Issue before it sells out.

A filled application form is to be sent back via our e-mail, info@parthiansecuriesng.com on or before June 8, 2024. Note that Photocopies or scanned copies of the Form will be rejected. 

Necessary payment is to be made into our account number ______