Oando eyes N500bn fresh capital via share offering

Oando Plc will, at its 46th Annual General Meeting (AGM) on August 11, seek shareholders’ authorisation to raise additional capital of up to N500 billion or its foreign currency equivalent in the Nigerian and/or international capital markets.

Oando will also be seeking shareholders’ approval to issue up to 10 billion ordinary shares of 50 kobo each, either as a standalone issue or by the establishment of capital raising programmes. The company currently has 12,431,412,481 shares outstanding, each valued at N50.5 as of July 18. It had reached a 52-week high of N98.4 and a 52-week low of N17.45.

The company’s audited consolidated and separate financial statements for the year ended December 31, 2024 shows that it almost doubled its revenue to N4.086 trillion last year from N2.845 trillion in 2023. The group’s profit more than doubled to N224.856 billion from N61.996 billion in 2023.

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This capital raising by Oando will be by any of public offerings, private placements, debt to equity conversions, rights issues and/or other transaction modes, at price(s) determined through book building or any other acceptable valuation method or combination of methods at such dates, and on such terms and conditions as may be determined by the board of directors of the company (the board) subject to obtaining the requisite regulatory approvals.

Also, the board will be seeking shareholders’ approval to enter into capital restructuring agreements with key stakeholders and lenders and convert up to $300 million out of the company’s existing Reserves-Based Lending (RBL) debt into equity, subject to terms and conditions to be determined by the Directors.

The board will also seek shareholders’ approval to establish a multi-instrument issuance programme in an amount up to $1.5billion or its naira equivalent and to proceed with subsequent issuances of bonds, certificates, instruments and/or other securities under the programme, at such time and on such terms and conditions to be determined by the directors subject to obtaining all relevant regulatory approvals subject to terms and conditions to be determined by the board.

Oando will seek to be authorised to accept surplus monies arising from any potential oversubscription from the capital raising programmes, in such proportion as may be determined by the board, subject to obtaining the relevant regulatory approvals.

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The board will equally seek to be authorised to enter into any agreements and/or execute any documents, appoint such professional parties, perform all such other acts and do all such other things as may be necessary for or incidental to effecting the above resolutions, subject to obtaining the approvals of relevant regulatory authorities, including without limitation, complying with the directives of any regulatory authority.