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International Breweries floats N1.3b offer


September 09, 2007/ Guardian



To enhance its positive capacity and repay its budging loan, International Breweries Plc, one of the companies quoted on the Nigerian Stock Exchange has floated a public offer to raise additional N1.3 billion.


Packaged by Sterling Capital Markets Limited as issuing house, the application opens on August 31, 2007 and closes on September 28, 2007, and it involves an offer for subscription of 1.6 billion shares of 50 kobo each at 87 kobo per share.


Already, an application has been made to the council of the Exchange for the admission to its daily official list of the 1.6 billion ordinary shares now being offered for subscription.


The offer is 80 per cent underwritten on a firm basis by the issuing house indicating that it may have been fully subscribed.


The purpose of the offer, according to the prospectus, is to enable the company rebuild its capital base and carry out restructuring, workers\' right-sizing, empowerment and expansion of production facilities.


Specifically, capital investments to improve plant and equipment reliabilities and expand overall production capacity will get the lion share of 69.94 per cent or N921.8 million, while 25.13 per cent or N331.3 million will go into staff rightsizing costs and the remaining 4.93 per cent or N65 million will go into the repayment of bridging loan.


By the content of the prospectus in the event of an over subscription, additional shares may be absorbed subject to approval of the board of the company, and the subsequent approval of the Securities and Exchange Commission (SEC).


Offshore investors can also participate in the offer through foreign currency denominated subscription in line with 5.17 of the Nigerian Investment Promotion Commission Act, Cap N.117 LFN 2004 and in compliance with rule 209 and 210 of SEC rules and regulations and the Exchange guidelines on foreign investment through the Nigerian stock market.



The prospectus added that the new shares being offered should rank parri passu in all respects with the issued ordinary shares of the company.


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