Oando Plans Major Capital Drive, Eyes Domestic and International Markets for ₦500 Billion Funding

Oando Plc has announced plans to raise up to ₦500 billion or its foreign currency equivalent through a combination of capital raising instruments in the Nigerian and international capital markets.

The proposal is subject to shareholder approval at the company’s 46th Annual General Meeting (AGM) scheduled to hold on August 11, 2025.

In a regulatory disclosure, the company stated that the fundraise will be executed through one or more methods, including public offerings, private placements, rights issues, debt-to-equity conversions, or a combination of these options.

The transaction is expected to be carried out at prices determined by book building or other valuation techniques as approved by the Board, and will be subject to regulatory approvals.

Oando will also seek shareholder approval to issue up to 10 billion ordinary shares of 50 kobo each, either on a standalone basis or under an established capital raising programme.

The company currently has 12.43 billion shares outstanding. As of July 18, Oando shares traded at ₦50.5 per unit, with a 52-week range of ₦17.45 to ₦98.4.

The company’s audited financial statements for the year ended December 31, 2024 showed significant growth with revenue increasing to ₦4.09 trillion from ₦2.84 trillion in 2023.

Profit after tax rose to ₦224.86 billion, more than tripling from ₦61.99 billion recorded in the previous year.

In addition to the proposed capital raise, the Board will request authorization to establish a multi-instrument issuance programme of up to $1.5 billion or its naira equivalent, allowing for future issuances of bonds, notes, and other financial instruments.

Oando is also seeking approval to convert up to $300 million from its existing Reserve-Based Lending (RBL) facility into equity, as part of a broader capital restructuring initiative with key lenders and stakeholders.

The company noted that such conversion would strengthen its balance sheet and enhance shareholder value.

The company plans to retain flexibility in managing oversubscriptions by accepting surplus funds from the offering, subject to Board discretion and regulatory compliance.

The Board will also request the mandate to appoint advisers and execute all necessary agreements to facilitate the proposed transactions, subject to approval by relevant authorities.

If approved, the fundraise will support Oando’s growth strategy, debt optimization, and long-term sustainability objectives in Nigeria’s evolving energy landscape.