Oando Plc has submitted an application to the Nigerian Exchange for approval to list a rights issue of 4,415,867,342 ordinary shares. The company aims to raise N220.79 billion in fresh capital through this offering.
The details of the proposal were outlined in a regulatory filing signed by Mrs. Folasade Ibidapo-Obe, Oando’s Secretary and Chief Compliance Officer.
The rights issue consists of 4,415,867,342 ordinary shares, each priced at 50 kobo, with an offer price of N50 per share. The proposal is still subject to approvals from the Securities and Exchange Commission (SEC), the Johannesburg Stock Exchange, and the Reserve Bank of South Africa.
Shareholders will be eligible to purchase one new ordinary share for every two shares they currently own. Additional details, including key dates, will be announced later.
Key Data Highlights
- Oando Plc currently has 12,431,412,481 outstanding shares listed on the Nigerian Exchange Limited. At a share price of N44, this gives the company a market capitalization of N546.9 billion.
- This represents approximately 0.4% of the Nigerian Exchange’s total market capitalization of N121.5 trillion as of February 17, 2026.
If approved, the rights issue will increase Oando’s outstanding shares on the NGX and could boost its market capitalization. The rights issue price of N50 per share represents a premium over the current share price of N44, which may appeal to existing shareholders.
Financial Context
The capital raise follows a challenging 2025 financial year for Oando. Revenue dropped to N3.21 trillion from N4.08 trillion in 2024, while profit margins also declined.
- Gross profit fell by 82% to N27.7 billion, as high sales costs of N3.18 trillion eroded revenue.
- Pre-tax profit plunged to N15.2 billion, compared to N383.8 billion in 2024.
However, there were some positive signs:
- Retained losses narrowed to N90.2 billion from N292.4 billion.
- Total assets grew by 4.19% to N6.7 trillion, while total liabilities increased by 6.8% to N7.2 trillion.
The company expects its balance sheet to strengthen after the rights issue.
