Oando Plc has applied to the Nigerian Exchange for approval to list a rights issue of 4,415,867,342 ordinary shares of the group, targeting N220.79 billion in fresh capital.
Details of the proposal were disclosed in a regulatory filing signed by Mrs. Folasade Ibidapo-Obe, the company’s Secretary and Chief Compliance Officer.
Comprising 4,415,867,342 ordinary shares of 50 kobo each, the offer is priced at N50 per share and remains subject to approvals from the SEC, the Johannesburg Stock Exchange, and the Reserve Bank of South Africa.
Shareholders will be entitled to one new ordinary share for every two existing units held, with key dates and further details to be announced in due course.
What the data is saying
Oando Plc currently has 12,431,412,481 outstanding shares listed on the Nigerian Exchange Limited, which at a share price of N44 translates to a market capitalization of N546.9 billion.
- This represents about 0.4% of the Nigerian Exchange’s total market capitalization of N121.5 trillion as of the trading day ended 17 February 2026.
- If the rights issue is approved, it will increase Oando’s outstanding shares on the NGX and potentially expand the company’s market capitalization.
- At the current share price of N44, the rights issue price of N50 represents a premium, which existing shareholders are expected to consider.
The capital raise comes after a softer 2025 financial year, during which revenue declined to N3.21 trillion from N4.08 trillion, while profitability margins contracted.
Gross profit fell by 82% to N27.7 billion, as sales costs of N3.18 trillion significantly offset revenue performance.
Hence, pre-tax profit declined sharply to N15.2 billion from N383.8 billion recorded in 2024.
However, retained losses narrowed to N90.2 billion from N292.4 billion, while total assets rose 4.19% to N6.7 trillion and total liabilities increased 6.8% to N7.2 trillion, with the balance sheet expected to strengthen after the rights issue.
Backstory
In August 2025, Oando Plc held an Extraordinary General Meeting (EGM) to address the reduction in its capital for the year ended 31 December 2024.
- Shareholders reviewed and discussed measures to resolve the capital reduction, in line with Section 137 of the Companies and Allied Matters Act 2020.
- This followed Oando’s 46th Annual General Meeting earlier the same day, where shareholders approved ordinary and special business, including a board-backed plan to raise share capital by up to N500 billion.
- In late July 2025, Oando had 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 proposed issuing up to 10 billion ordinary shares of 50 kobo each through rights issues, public offerings, private placements, or debt-to-equity conversions, with the final approach determined by the board.
What you should know
Oando Plc shares are up over 8% month-to-date on the Nigerian Exchange, likely driven by the proposed rights issue, marking a strong monthly performance since June 2025 when they gained 21.57%.
- Market activity has surged, with trading volume rising over 180 million shares, compared with just 92 million in the previous month.
- Year-to-date, Oando’s shares are up 9.45% on the Nigerian Exchange and could see a stronger run in 2026, supported by positive fundamentals and ongoing capital-raising efforts, compared to 2025 when most oil and gas stocks declined.
