IntBrew Gains 40%, Plans to Return Capital to Shareholders
International Breweries Plc (IntBrew) jumped by 40% amid a sharp increase in buying activity in the company’s shares, following a plan to reorganise its capital.
Trading data from the Nigerian Exchange (NGX) showed that the brewer’s share price rose to N13.30, up 40% from its opening price of N9.50 last week. Transaction volume on the stock ranged between 1 and 8 million, according to trading data from the local bourse.
The market value of International Breweries Plc, with 168.291 billion outstanding shares, surged by 40% week-on-week to N2.238 trillion due to an all-week rally.
International Breweries Plc informed the Nigerian Exchange Limited that the Company is proposing to reorganise its share capital by eliminating negative retained earnings and returning excess capital to shareholders.
The transaction will be executed pursuant to the provisions of Section 131 of the Companies and Allied Matters Act, 2020 (as amended), subject to the appropriate regulatory approval and confirmation by the Federal High Court, it said in a disclosure.
Despite the return to profitability, International Breweries remains unable to distribute dividends due to accumulated losses of ₦191,032,749,000 as at FY 2025.
The Company proposes to apply a portion of the balance in the Share Premium Account to eliminate the accumulated losses. Thereby restoring distributable reserves and re-establishing the Company’s capacity to pay dividends from future profits.
There will be no reduction in the number of shares in issue, management told the regulator in the filing. Following the elimination of accumulated losses, the Company proposes a further reorganisation of the Share Premium Account to enable the return of capital to shareholders.
International Breweries said the amount payable per ordinary share will be distributed on a pro rata basis, determined with reference to the total amount approved for distribution from the Share Premium Account at a qualification date set by the Board of Directors.
The regulatory disclosure added that shareholders will be required to vote on the proposed share capital reorganisation at the forthcoming Annual General Meeting. Airtel Africa Gains 21%, Market Value Surges Near N20trn
