Oando Targets N220bn in One of Nigeria’s Largest Equity Offerings

Oando Plc has applied to the Nigerian Exchange Limited (NGX) for the approval and listing of a proposed rights issue aimed at raising approximately N220.79bn through the issuance of 4,415,867,342 ordinary shares of 50 kobo each at N50.00 per share.

The energy group said in a regulatory disclosure to the sharehplders seen by THE WHISTLER that the proposed offer will be structured on the basis of one new ordinary share for every two existing ordinary shares held as at a date to be announced.

If fully subscribed, the transaction would significantly strengthen the company’s equity base and provide additional capital to support its strategic growth objectives.

The proposed rights issue remains subject to regulatory approvals from the Securities and Exchange Commission (SEC), the NGX, JSE Limited, and the South African Reserve Bank in respect of shareholders resident in South Africa.

Oando stated that further details regarding the timetable, qualification date, and other salient terms of the offer will be communicated to the market in due course upon receipt of the necessary approvals.

A rights issue allows existing shareholders to purchase additional shares in proportion to their current holdings, typically at a specified price, enabling companies to raise fresh capital while giving shareholders the opportunity to maintain their ownership stakes.

The proposed capital raise marks one of the largest equity offerings on the Nigerian market in recent years and underscores Oando’s ongoing efforts to reinforce its balance sheet and position the company for long-term value creation across its energy operations.