Oando to raise N220.79bn via rights issue

Oando Plc has formally submitted an application to the Nigerian Exchange Limited seeking approval to list a rights issue of 4,415,867,342 new ordinary shares as part of a capital-raising initiative that would generate about N220.79bn in fresh equity capital.

In a corporate disclosure filed on 17 February 2026 and signed by the company’s Secretary, Folasade Ibidapo-Obe, Oando notified the NGX of its intention to offer one new ordinary share for every two existing ordinary shares held as of the qualification date.

The proposed rights issue is on the basis of one new ordinary share for every two existing ordinary shares held at N50 each. The offer is still subject to regulatory approval.

“The Proposed Rights Issue remains subject to various regulatory approvals, including the approval of the Nigerian Securities and Exchange Commission, Nigerian Exchange Limited, JSE Limited, and the Reserve Bank of South Africa (for shareholders in South Africa),” disclosed part of the statement.

Oando’s current outstanding share count on the NGX stands at 12,431,412,481 ordinary shares, meaning that the proposed issuance represents a material increase in the company’s issued share capital should it be fully subscribed. Market watchers have indicated that rights issues are increasingly being deployed by corporations listed on the NGX to strengthen their equity bases, support working capital, finance growth initiatives, or enhance balance sheet resilience without relying on additional borrowings.

Following the announcement of the proposed rights issue, Oando’s shares on the NGX experienced negative trading movement to close at N43.4/unit.

The issue price of N50 per share represents a premium relative to recent trading levels, a factor that could influence shareholder participation once subscription details are finalised.

Oando added that further announcements would be made, including salient dates and times relating to the Proposed Rights Issue.

Source: https://punchng.com/oando-to-raise-n220-79bn-via-rights-issue/