Oando Plc has taken a decisive step by applying to the Nigerian Exchange (NGX) to list 4.42 billion rights shares.
Oando Capital Raise Ambition
The company intends to raise ₦220.79 billion in fresh capital, according to a regulatory filing.
Secretary and Chief Compliance Officer, Mrs Folasade Ibidapo-Obe, signed the disclosure.
Each share costs ₦50, representing 50 kobo of the company’s capital.
The offer requires approvals from the SEC, Johannesburg Stock Exchange, and South African Reserve Bank.
Shareholders will receive one new share for every two existing units, with key dates to follow.
Market Impact
Currently, Oando holds 12.43 billion shares listed on the NGX, valued at ₦44 each.
Its market capitalisation stands around ₦547 billion, about 0.4% of the NGX total value.
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If approved, the rights issue will expand Oando’s share base and boost market capitalisation.
The offer comes at a slight premium, which existing shareholders should consider carefully.
The market reacted positively, with shares rising over 8% month-to-date and trading volumes surging.
Year-to-date, Oando shares have gained 9.45%, outperforming many oil and gas peers in 2025.
Financial Recovery
The capital raise follows a challenging 2025, when revenue dropped to ₦3.21 trillion from ₦4.08 trillion.
Pre-tax profit tumbled to ₦15.2 billion, while gross profit fell 82% to ₦27.7 billion.
High sales costs of ₦3.18 trillion heavily reduced profitability margins.
The company narrowed retained losses to ₦90.2 billion from ₦292.4 billion, showing recovery signs.
Total assets rose 4.19% to ₦6.7 trillion, and total liabilities increased 6.8% to ₦7.2 trillion.
In August 2025, Oando convened an EGM to resolve capital reduction for 2024.
Earlier, its 46th AGM approved board-backed plans to raise up to ₦500 billion in share capital.
The company plans to issue shares via rights, public offers, private placements, or debt conversion.
The rights issue demonstrates Oando’s strategy to strengthen the balance sheet and rebuild investor confidence.
