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Champion Breweries Secures N60 Billion to Fix Free Float Deficiency Ahead of NGX Deadline

A last-minute N60 billion lifeline saves Champion Breweries from non-compliance. How a two-step capital raise transformed its standing on the Nigerian Exchange.

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Champion Breweries Secures N60 Billion to Fix Free Float Deficiency Ahead of NGX Deadline

Champion Breweries Plc has resolved its free float deficiency ahead of the Nigerian Exchange's deadline. The company raised around N60 billion to meet the minimum requirement for its Main Board listing. This move follows earlier concerns about its compliance status on the exchange.

The brewery had previously appeared on Schedule 7 of NGX RegCo's X-Compliance Report due to insufficient free float. To address this, it launched a two-step capital-raising programme: a N15.9 billion Rights Issue and a N42 billion Public Offer. These funds were aimed at strengthening the company's balance sheet and supporting expansion plans.

The Securities and Exchange Commission approved the capital raise, and the proceeds are now in the final stages of being credited to the Central Securities Clearing System (CSCS) account. With the successful completion of the raise, Champion Breweries' free float now exceeds the NGX threshold of 20% of issued shares or a minimum free float value of N20 billion.

As a result, the Below Listing Standard (BLS) Compliance Status Indicator previously displayed next to the company's name on NGX platforms will be removed. The exchange confirmed the brewery's compliance after verifying the updated free float level.

The capital raise ensures Champion Breweries meets the NGX free float requirement for Main Board-listed companies. The removal of the compliance indicator reflects its updated status on the exchange. The funds raised will also support the company's long-term financial and operational goals.

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