Champion Breweries Plc to Issue New Shares to Address Free-Float Deficiency
In a bid to strengthen its position on the Nigerian Exchange Limited, Champion Breweries Plc has announced plans to issue new shares to the public to address its free-float deficiency. The move is expected to bolster the company’s infrastructure and enhance its production capacity, enabling it to meet the growing demand for its products.
According to Dr. Inalegwu Adoga, Managing Director of Champion Breweries, the company has engaged with the NGX to develop a compliance plan with a targeted timeline of Q1 2025. The plan involves share divestment to the retail market through a public offer, which is expected to address the free-float deficiency requirement, raise fresh capital for the business, and fulfill the company’s capacity to meet existing plans.
Despite the challenges posed by the macroeconomic environment, Champion Breweries has reported a strong revenue growth of 68% in nine months of 2024, reaching N14.02 billion compared to the same period in 2023. The company’s pre-tax profit stood at N178 million, with the company having fully settled its foreign liabilities in nine months of 2024 to mitigate FX volatility moving forward.
Imo-Abasi Jacob, Chairman of the Board of Champion Breweries, expressed confidence in the company’s strategic direction, stating, "Champion Breweries has demonstrated resilience and commitment to its shareholders and stakeholders, despite the turbulent economic conditions. Our focus on operational efficiency, cost reduction, and market expansion reflects our determination to deliver sustainable value and growth."
The company’s new strategic direction under the core ownership of EnjoyCorp Limited, led by Managing Director David Butler, aims to position Champion Breweries as a major player in the beverage industry. Butler emphasized that the company’s vision is to become the undisputed leader in the field, with a focus on operational efficiency, renewable energy, and market expansion.
The NGX, led by CEO Jude Chiemeka, commended Champion Breweries for its efforts to address its free-float deficiency and emphasized its commitment to supporting the beverage sector through equity listings, bonds, and other asset classes. The company has reported paying N29.3 billion in dividends and N39 billion in taxes over the last year, contributing to government revenue and driving broader economic growth.
The move by Champion Breweries to issue new shares is seen as a positive step towards strengthening its position on the Nigerian Exchange Limited and positions the company for future growth and success.
