Business Briefings
Oando Moves to List N220.8bn Rights Issue on NGX
Oando Plc has applied to the Nigerian Exchange Limited to list a rights issue aimed at raising about N220.79 billion from shareholders, as the company seeks to reinforce its capital base.
The offer involves more than 4.4 billion ordinary shares valued at 50 kobo each and priced at N50 per share, according to a regulatory filing signed by Company Secretary and Chief Compliance Officer Folasade Ibidapo-Obe. Final clearance is still required from the Securities and Exchange Commission Nigeria, the Johannesburg Stock Exchange, and the South African Reserve Bank.
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Existing investors will be entitled to one additional share for every two currently held, with the company expected to release subscription dates and further details later.
Oando currently has over 12.4 billion shares on the exchange, translating to a market value of roughly N546.9 billion based on recent prices. The proposed offer price sits above the prevailing market rate, meaning shareholders will have to weigh the premium against the company’s recovery and expansion plans.
The fundraising effort follows a softer financial year marked by weaker revenue and tighter margins, although retained losses declined and asset levels improved. Management believes the planned capital injection will strengthen the balance sheet and position the company for future growth, in line with earlier shareholder approval for a broader capital-raising programme of up to N500 billion.
