The rights issue was led by Rand Merchant Bank Nigeria Limited (RMB Nigeria), which acted as the lead issuing house. Working closely with Presco, RMB Nigeria structured, coordinated and executed the transaction, delivering a seamless capital raise within an accelerated timeframe.
The capital raise forms a critical part of Presco’s long-term growth strategy. Proceeds from the rights issue are expected to support the company’s ambition to become the most profitable, sustainable and fully integrated edible oils group in Sub-Saharan Africa. It also aligns with Presco’s objective of helping to bridge Nigeria’s supply–demand gap in the oil palm industry, a sector of increasing strategic importance to the country’s food security and industrial development.
Investor response to the offer was robust. The rights issue recorded a subscription level of 103 per cent, driven largely by strong participation from existing shareholders. The oversubscription reflects confidence in Presco’s operational performance, governance standards and long-term strategic direction.
Throughout the transaction, RMB Nigeria provided end-to-end deal management. Its role covered transaction leadership, advisory on deal structure, navigation of complex regulatory processes and coordination of an extensive investor engagement programme. Despite the scale and complexity of the transaction, the rights issue was completed within four months of receiving shareholders’ approval.
Commenting on the outcome, the Executive Director and Head of Investment Banking at RMB Nigeria, Chidi Iwuchukwu, described the transaction as a clear endorsement of Presco’s growth ambitions and market positioning. He noted that the successful and oversubscribed offer underscores both the strength of Presco’s brand and RMB Nigeria’s capacity to deliver large, value-enhancing capital market solutions. He also acknowledged the collaboration of key market institutions, including the Securities and Exchange Commission, Nigerian Exchange Limited and Central Securities Clearing System, alongside co-advisers to the deal.
In a similar vein, the Head of Corporate Finance at RMB Nigeria, Bimbo Oyeyiga, highlighted the broader significance of the transaction for Nigeria’s agro-allied industrial sector. She described the rights issue as a major milestone that is expected to strengthen Presco’s competitive position while reinforcing investor confidence in its leadership and long-term strategy. According to her, the transaction also demonstrates the resilience of Nigeria’s capital markets and RMB’s continued commitment to supporting sustainable growth across key sectors of the economy.
Presco Plc is a long-established player in Nigeria’s agro-industrial landscape, with over three decades of operations. The successful completion of its rights issue not only provides fresh capital for expansion but also signals renewed optimism for equity financing as a viable tool for driving industrial growth in Nigeria.