Lagos, Nigeria – Oando Plc has applied to the Nigerian Exchange for approval to list a rights issue of 4,415,867,342 ordinary shares, targeting N220.79 billion in fresh capital to strengthen its balance sheet and support growth plans.
Okay News reports that the offer, disclosed in a regulatory filing by Company Secretary Folasade Ibidapo-Obe, is priced at N50 per share. Shareholders will be entitled to one new ordinary share for every two existing units held. The proposal remains subject to approvals from the Securities and Exchange Commission, the Nigerian Exchange, the Johannesburg Stock Exchange, and the Reserve Bank of South Africa.
The capital raise follows a softer 2025 financial year. Revenue declined to N3.21 trillion from N4.08 trillion, while gross profit fell 82 percent to N27.7 billion as sales costs of N3.18 trillion offset revenue performance. Pre-tax profit dropped sharply to N15.2 billion from N383.8 billion in 2024. However, retained losses narrowed to N90.2 billion from N292.4 billion, and total assets rose 4.19 percent to N6.7 trillion.
Oando currently has 12.43 billion outstanding shares listed on the NGX. At a share price of N44, its market capitalisation stands at N546.9 billion, representing about 0.4 percent of the exchange’s total value. The rights issue price of N50 represents a premium that existing shareholders will need to consider. Trading activity has surged, with volume rising over 180 million shares compared with 92 million in the previous month, and shares are up over 8 percent month-to-date.
The company previously held an Extraordinary General Meeting in August 2025 to address capital reduction, following a board-backed plan to raise up to N500 billion through various instruments. This rights issue forms part of that broader strategy. If approved, the rights issue will increase Oando’s outstanding shares and potentially expand its market capitalisation while strengthening the balance sheet.
