Oando Targets ₦500bn in New Funding via Share Issuance, Debt Conversion

Oando Plc has announced plans to raise up to ₦500 billion through a combination of fresh equity issuance and debt conversion strategies, as part of its efforts to strengthen its capital base and fund future growth.

In a notice to the Nigerian Exchange Limited (NGX), the energy company said it is seeking shareholder approval at its upcoming Annual General Meeting (AGM) to issue up to 10 billion new ordinary shares. The proposed shares are to be offered at a price to be determined by the board of directors, in consultation with professional advisers and subject to market conditions.

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The capital raise will be executed through various means, including public offerings, private placements, rights issues, or debt-to-equity conversions. This move, according to the company, will support its long-term strategic plans and reduce its debt burden.

“The proposed capital raise is geared towards improving our balance sheet, enhancing liquidity, and positioning the company for future growth,” Oando said in a statement. “It will also provide us with the flexibility to fund existing and new projects across the energy value chain.”

Shareholders will also vote on authorizing the company to increase its issued share capital from ₦7.5 billion to ₦17.5 billion, reflecting the addition of 20 billion ordinary shares at ₦0.50 each.

If approved, the board will have the authority to allot and issue the new shares at its discretion, subject to regulatory approvals and market conditions.

Industry analysts say the fresh capital will allow Oando to scale operations and participate more competitively in upstream, downstream, and energy transition projects across Nigeria and Africa.

Oando’s AGM is scheduled to take place on August 19, 2025, in Lagos.