Nigerian Breweries Plc (NB) has said the firm’s N599.1 billion right issue would help strengthen its capital base by deleveraging its balance sheet, eliminate certain FX-related exposures and reduce bank borrowings, thereby offering the company greater financial flexibility to promote business growth and continuity.

Stating the details of the rights issue, the Managing Director, Nigerian Breweries, Hans Essadi, disclosed that the proceeds of the rights issue would be deployed into payment of its foreign and local currency-denominated obligations to eliminate foreign exchange risk and revaluation losses to create long term and sustainable value to shareholders.He added that the issue represents an opportunity for shareholders to support the company’s strategic vision and participate in the next phase of its growth.

Managing Director, Vetiva Advisory Services Limited, Olutade Olaegbe, commended the management of Nigerian Breweries for their visionary leadership and their commitment towards executing the Issue. He also thanked the company for trusting Vetiva Advisory Services Limited and StanbicIBTC Capital Limited to advise on this landmark transaction and expressed confidence that the issue would encourage other global multinational companies to approach the equity capital markets to meet their strategic objectives.

The company announced that it has received regulatory approval to raise N599.1 billion by way of a rights issue. A total of 22,607,491,232 ordinary shares of 50 kobo each in the share capital of Nigerian Breweries are being offered to shareholders whose names appear in the register of members as of the Qualification Date being July 12, 2024.

The company said the issue shall be based on 11 new ordinary shares for every five ordinary shares held as of the qualification date and at an issue price of N26.50 per ordinary share.

Vetiva Advisory Services Limited and Stanbic IBTC Capital Limited are acting as the Lead Issuing House and the Joint Issuing House to the issue respectively, to assist the company in managing the issue process. The acceptance list for the issue is expected to open on September 2, 2024 and close on October 11, 2024.

Full terms of the issue will be set out in a right circular to be mailed directly to qualifying shareholders of the company, which will contain a provisional allotment letter and the acceptance form.

All shareholders should read the rights circular and, where in doubt, consult their stockbroker, fund/portfolio manager, accountant, banker, solicitor or any other professional adviser for guidance before subscription.

Meanwhile, positive sentiments persisted in the equities sector of the Nigerian Exchange Limited (NGX) as gains in Oando and 27 stocks lifted the All-share index (ASI) further by 0.1 per cent.

At the close of transactions yesterday, the ASI rose by 0.1 per cent to close at 96,873.74 from 96,793.95 recorded on Monday. Also, the market capitalisation of listed equities increased by N45 billion from N55.601 trillion to N55.646 trillion.

Yesterday’s upturn was spurred by price appreciation in large and medium capitalised stocks amongst which are: Oando, Stanbic IBTC, IMG Plc, Eterna, Julius Berger, UACN, GTCO, E-tranzact, Learn Africa and C&l Leasing.

As a result, the Year-To-Date (YTD) return improved to 29.6 per cent from 29.4 per cent achieved the previous day. Analysts at Afrinvest, said: “Investor sentiment, as measured by market breadth, remained unchanged at -0.02x, as 29 stocks advanced, 30 declined. Tomorrow, we expect the bourse to sustain the upbeat momentum, spurred by extended positive reactions to interim dividend announcements.”

On the price movement chart, IMG, C&l Leasing and Guinea Assurance topped the gainers’ chart in volume terms with 10 per cent to close at N31.90 kobo, N4.07 and 55 kobo respectively while Eterna followed with 9.90 kobo to close at N29.90 kobo. However, Daar comms led the losers’ chart with 9.09 kobo to close at 60 kobo while TIP Plc followed with 8.64 kobo to close at N2.01 kobo.