Champion Breweries Plc has announced plans to raise N58 billion through equity offerings to finance its proposed acquisition of Bullet, the ready-to-drink beverage brand.
The company’s Managing Director, Inalegwu Adoga, disclosed the plan during its Facts Behind the Figures presentation at the Nigerian Exchange Limited (NGX) on September 23.
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Structure of the capital raise
Adoga explained that the N58 billion equity raise will be split between a N42 billion public offer and a N16 billion rights issue. According to him, this structure allows both new and existing shareholders to participate in the company’s growth plans.
“Our ambition is to raise capital from the market, and our initiative falls into two categories. We’re going to raise equity, and we’re also going to focus on debt financing,” Adoga said.
The move follows Champion Breweries’ August 20 announcement of its plan to acquire the brand assets and intellectual property of Bullet from Sun Mark. The beverage brand already operates in 14 African markets, and the acquisition is expected to strengthen Champion Breweries’ regional presence and create a platform for export opportunities.
Beyond the acquisition, a portion of the N58 billion capital raise will be channelled into supporting the company’s working capital requirements.
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Debt programme to support expansion
In addition to the equity raise, Champion Breweries is planning a N45 billion bond programme. The first tranche aims to secure N30 billion through a five-year unsecured bond issuance.
Proceeds from the bond will be directed toward capital expenditure, including investments in new packaging lines, returnable packaging materials, and technology systems.
Adoga noted that the company’s shift away from the Heineken platform requires substantial investment in technology infrastructure. “We are moving away from the Heineken platform where we have operated for many years. This requires us to build our own digital and technology backbone to operate independently and improve operational efficiency,” he added.
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Market performance and financial results
Champion Breweries’ fundraising plans follow a strong year on the Nigerian Exchange. The company’s share price closed at N15.25 on October 4, representing a 300 per cent gain year-to-date and a 52-week high of N19.73 recorded on August 20.
In the first half of 2025, the brewer reported a net income of N2.3 billion, a turnaround from a loss of N386.7 million in the same period of 2024. Revenue grew 67 per cent to N15.9 billion, while net income margin stood at 14.3 per cent.
With earnings per share of N0.26, the stock trades at a price-to-earnings ratio of 58.7x, signalling sustained investor confidence in the company’s growth trajectory.
