By Seun Ibiyemi
Oando Plc will seek shareholder authorisation at its 46th Annual General Meeting on 11 August to raise up to N500 billion, or its equivalent in foreign currency, through the Nigerian and international capital markets.
The company will also request approval to issue up to 10 billion ordinary shares of 50 kobo each, either as a standalone issue or under established capital raising programmes.
Currently, Oando has 12,431,412,481 shares in circulation, valued at N50.5 as of 18 July, having reached a 52-week high of N98.4 and a low of N17.45.
The company’s audited results for the year ending 31 December 2024 revealed revenue of N4.086 trillion, nearly double the N2.845 trillion recorded in 2023. Group profit also rose significantly to N224.856 billion from N61.996 billion in 2023.
The proposed capital raise could take the form of public offers, private placements, debt-to-equity conversions, rights issues or other transactions, at prices determined by book building or other acceptable valuation methods, subject to necessary regulatory approvals.
Additionally, the Board will seek approval to enter capital restructuring agreements with key stakeholders and lenders, converting up to $300 million of the company’s Reserves-Based Lending debt into equity.
It will also request authorisation to set up a multi-instrument issuance programme worth up to $1.5 billion, or its naira equivalent, and proceed with issuing bonds, certificates and other securities under this programme at its discretion, subject to regulatory consent.
Furthermore, the company aims to be permitted to utilise surplus funds from any oversubscription of capital raising programmes as determined by the Board, in line with approvals.
The Board will also seek authorisation to execute all necessary agreements, appoint professional advisers and undertake all other actions needed to effect the resolutions, ensuring compliance with regulatory requirements.