Oando Plc, one of Nigeria’s leading indigenous energy conglomerates, is set to seek shareholder authorisation to raise up to N500 billion (or its foreign currency equivalent) at its upcoming 46th Annual General Meeting (AGM) on August 11. The company aims to secure approval for this substantial capital injection through various avenues in both Nigerian and international capital markets.
The proposed capital raise comes on the heels of a healthy financial performance for the year ended December 31, 2024. Oando’s audited consolidated and separate financial statements reveal that the company nearly doubled its revenue to N4.086 trillion from N2.845 trillion in the previous fiscal year. Group profit also saw notable increase, more than doubling to N224.856 billion from N61.996 billion in 2023.
Shareholders at the AGM will be asked to approve the issuance of up to 10 billion new ordinary shares of 50 kobo each. This issuance could be a standalone offering or part of broader capital raising programmes. Currently, Oando has 12,431,412,481 shares outstanding, valued at N50.5 per share as of July 18. The company’s stock has experienced considerable volatility over the past year, trading between a 52-week high of N98.4 and a low of N17.45.
The planned capital raise offers flexibility in its execution. Oando’s board intends to pursue this funding through a diverse range of mechanisms, including public offerings, private placements, debt-to-equity conversions, rights issues, and other transaction modes. Pricing will be determined through book building or other acceptable valuation methods, at dates and on terms and conditions to be decided by the Board of Directors, contingent on obtaining all necessary regulatory approvals.
In addition to fresh capital, the board will also seek shareholder approval to enter into crucial capital restructuring agreements with key stakeholders and lenders. A major part of this strategy involves the potential conversion of up to $300 million of the company’s existing Reserves-Based Lending (RBL) debt into equity. The specific terms and conditions for this conversion will be determined by the Directors, aiming to deleverage the company while bringing in new equity partners.
