Oando Plc recently held an Extraordinary General Meeting (EGM) to address the reduction in the company’s capital for the year ended December 31, 2024.
This update was shared in an official release filed on the Nigerian Exchange (NGX), detailing what transpired at the Extraordinary General Meeting held on August 12, 2025.
During the EGM, shareholders reviewed and discussed measures aimed at resolving the capital reduction, in line with Section 137 of the Companies and Allied Matters Act 2020.
This meeting followed the company’s 46th Annual General Meeting (AGM), which took place earlier the same day, where shareholders approved both ordinary and special business matters.
Part of the special business approved by shareholders was a capital-raising initiative proposed by the board, authorizing the company to increase its share capital by up to N500 billion.
Backstory
In late July 2025, Oando Plc announced its intention to raise up to N500 billion, or the equivalent in foreign currency, through the Nigerian or international capital markets, pending shareholder approval.
The company outlined plans to issue up to 10 billion ordinary shares of 50 kobo each, either as a standalone offering or as part of a broader capital-raising programme.
- Oando highlighted several options for the fundraising, including public offerings, private placements, rights issues, and debt-to-equity conversions.
The final approach, whether a single method or a mix, would be determined based on book building, valuation techniques, or any terms and timelines the board deems appropriate.
Alongside this, the board also proposed other capital-raising initiatives that would require shareholder approval at the upcoming meetings.
Other approved capital raising initiatives
The board also disclosed plans to enter into capital restructuring agreements with key stakeholders and lenders to convert $300 million of the company’s existing $375 million Reserve-Based Lending (RBL) debt into equity.
- This conversion will be carried out under terms and conditions determined by the Directors.
Additionally, the board sought shareholder approval to establish a multi-instrument financing programme of up to $1.5 billion, or its naira equivalent, designed to enhance the company’s capital-raising flexibility.
- The programme will include various instruments such as bonds, certificates, and other securities, which will be issued at times and on terms set by the board.
Shareholders also approved the restructuring plans recommended by the board.
