Oando Plc has applied to the Nigerian Exchange Limited (NGX) for approval to list a rights issue of 4,415,867,342 ordinary shares, targeting N220.79 billion in fresh capital, a move aimed at bolstering the company’s balance sheet and supporting future growth initiatives.
The details were disclosed in a regulatory filing signed by Mrs. Folasade Ibidapo-Obe, Oando’s Secretary and Chief Compliance Officer. The proposed offer, priced at N50 per share, comprises 50 kobo ordinary shares and remains subject to approvals from the Securities and Exchange Commission (SEC), the Johannesburg Stock Exchange, and the Reserve Bank of South Africa.
Under the terms of the proposed rights issue, shareholders will be entitled to one new ordinary share for every two existing units held. Key dates and further details will be announced in due course.
Market Implications
Oando currently has 12,431,412,481 outstanding shares listed on NGX, which, at the current share price of N44, translates to a market capitalization of approximately N546.9 billion. This represents roughly 0.4% of NGX’s total market capitalization of N121.5 trillion as of 17 February 2026.
If approved, the rights issue will increase Oando’s total outstanding shares and could expand the company’s market capitalization. The proposed offer price of N50 per share represents a premium over the current trading price, giving existing shareholders an opportunity to participate in the capital raise while potentially benefiting from future gains.
Financial Context
The capital-raising plan follows a challenging 2025 financial year. Oando’s revenue declined to N3.21 trillion from N4.08 trillion in 2024, while gross profit dropped sharply by 82% to N27.7 billion, reflecting high sales costs of N3.18 trillion. Pre-tax profit fell significantly to N15.2 billion from N383.8 billion the previous year.
Despite these challenges, retained losses narrowed to N90.2 billion from N292.4 billion, while total assets increased 4.19% to N6.7 trillion. Total liabilities rose 6.8% to N7.2 trillion, with analysts expecting the rights issue to strengthen the balance sheet and support operational resilience.
Strategic Capital Moves
In August 2025, Oando held an Extraordinary General Meeting (EGM) to address a reduction in its capital for the 2024 financial year, following approval of ordinary and special business at its 46th Annual General Meeting earlier the same day. During the meetings, shareholders endorsed a board-backed plan to raise up to N500 billion through various channels, including rights issues, public offerings, private placements, or debt-to-equity conversions.
The current proposal represents a portion of that broader capital-raising strategy, signaling Oando’s intent to stabilize its finances and provide flexibility for growth initiatives in the coming years.
Share Performance
Oando shares have responded positively to the proposed rights issue, rising over 8% month-to-date on NGX. This follows a strong performance in June 2025, when shares gained 21.57%. Trading activity has also surged, with monthly volumes exceeding 180 million shares compared to 92 million in the previous month. Year-to-date, Oando shares are up 9.45% on NGX, reflecting investor optimism amid ongoing capital-raising efforts and improving fundamentals, particularly relative to the broader oil and gas sector, which saw declines in 2025.
The rights issue, if approved, could provide a crucial boost to Oando’s financial flexibility, enhancing shareholder value while positioning the company for a stronger performance in 2026.