Presco begins N236.67bn rights issue

Presco Plc has announced the commencement of its N236.67bn rights issue on the Nigerian Exchange Limited.

In a corporate disclosure on Wednesday, the rights issue offers current shareholders of the company an opportunity to buy 166,666,667 ordinary shares of N0.50 each at N1,420 per share, based on one new ordinary share for every six ordinary shares held as of 13 October 2025.

The offer, which opened on Wednesday, will close on 2 December 2025.

According to the disclosure signed by the Company Secretary, Frederick Ichekwai, the funds to be raised will be directed towards asset acquisition. “The rights issue provides existing shareholders with the opportunity to increase their equity holdings in the company, thereby reinforcing their participation and support for Presco’s long-term vision.

“The capital raised will be directed towards greenfield and brownfield acquisitions, some of which are already in their final contractual stages, as well as industrial expansion projects designed to enhance production capacity and reinforce the company’s leadership in the region’s edible oil industry,” the disclosure said. Presco, which is Nigeria’s integrated edible oil business, reported a strong financial and operational performance for the nine months ending 30 September 2025, including a 108.2 per cent year-on-year growth in profit before tax to N139.7bn. Revenue for the first three quarters rose sharply by 113.5 per cent to N274.5bn, up from N128.6bn in the corresponding period last year. Gross profit grew by 118.5 per cent to N202.1bn, while operating profit increased by 121.5 per cent to N166.0bn. EBITDA improved by 118.1 per cent to N170.9bn, reflecting continued operational strength and cost management discipline.

On the strength of this performance, the Board of Directors approved an additional interim dividend of N10 per share, reflecting confidence in Presco’s fundamentals and a commitment to rewarding shareholders. Earnings per share rose by 114.0 per cent year-on-year to N110.79.

Commenting on the company’s performance, the Managing Director of Presco Plc, Reji George, said, “Presco’s nine-month year-to-date performance reflects not just strong numbers but the strength of our model in an evolving Nigeria. As the country navigates new economic realities, our consistency and focus continue to stand out. We have stayed disciplined in execution, translating efficiency and innovation into real, measurable growth.

“As the year draws to a close, we remain focused on sustaining our growth trajectory and are confident of a strong finish built on solid fundamentals and a prudent approach to financial management. Our vision goes beyond quarterly results. We see Presco as part of Nigeria’s solution, driving value from the soil to industry, building resilience in the economy, and creating sustainable opportunities for the future. Our commitment to long-term value remains firm, and we will continue to deepen efficiency and strengthen our contribution to Nigeria’s agricultural and industrial story.”

Presco’s shares concluded Wednesday’s trading at N1,450 per unit.

Source: https://punchng.com/presco-begins-n236-67bn-rights-issue