Oando Plc has announced plans to raise up to N500 billion in new capital as part of a sweeping financial restructuring and strategic growth plan aimed at strengthening its balance sheet and expanding its operations.
The Nigerian energy firm disclosed this in a notice filed with the Nigerian Exchange Limited (NGX) on Monday, July 21, ahead of its 46th Annual General Meeting slated for August 11.
Signed by Ayotola Jagun, the company secretary, the notice revealed that Oando intends to issue up to 10 billion new ordinary shares of 50 kobo each. These will be floated through public offerings, private placements, rights issues, or debt-to-equity conversions — depending on the route the company’s board chooses in line with market conditions and investor sentiment.
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According to the document, the capital raise may be conducted in both local and international markets. The company said it would be authorized to “raise additional capital of up to N500 billion or its foreign currency equivalent… at price(s) determined through book building or any other acceptable valuation method.” The process is subject to regulatory approvals.
As part of the broader financing strategy, Oando’s board is also seeking shareholders’ approval to convert up to $300 million of its Reserve-Based Lending (RBL) debt into equity. The company is targeting key stakeholders and lenders as part of this planned conversion, further emphasizing efforts to ease its debt burden and improve liquidity.
In a related move, Oando plans to establish a multi-instrument issuance programme worth up to $1.5 billion, enabling it to issue bonds, certificates, or other financial instruments. The goal is to diversify funding sources and provide flexibility in executing future capital raises.
The company added that it may absorb surplus funds from any oversubscription that results from the issuance, provided it complies with regulatory limits and approvals.
Financial Position and Stock Performance
Oando’s restructuring comes at a pivotal moment for the company. On Monday, its share price traded at N50.00, marking a 0.50 naira or 0.99 percent drop from the previous trading session. Over the past month, the stock has lost 20.89 percent in value, reflecting market caution amid broader volatility.
However, the long-term outlook remains robust — the stock has surged by 184.09 percent over the past year, according to data from Trading Economics.
Forecasts suggest that Oando may face short-term headwinds. Analysts project the share price will ease to N49.94 by the end of the current quarter and dip slightly to N48.31 within a year. Still, analysts believe the restructuring and recent acquisitions could improve the company’s fundamentals going forward.
Recent Acquisition and Segment Focus
The capital raise follows Oando’s landmark acquisition of a 100 percent stake in Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni in August 2024. The deal gives Oando full control of key assets and is expected to significantly boost its production capacity and reserves.
Oando Plc operates as a fully integrated energy solutions provider in Nigeria and across the West African region. Its operations are divided into four major segments: Exploration and Production (E&P), Supply and Trading, Gas and Power, and Corporate & Others. The E&P arm handles upstream operations — including oil exploration and production — through rights acquired in blocks located both onshore and offshore Nigeria.
The company says the capital injection will allow it to optimize existing operations and drive new investments across its supply chain — particularly in upstream assets, midstream infrastructure, and trading capacities.
Oando is positioning itself for more aggressive growth despite uncertainties in global oil markets and domestic economic headwinds by converting part of its debt to equity and establishing a large-scale multi-instrument programme. If successfully executed, the move is expected to place the company among the most financially agile indigenous energy players in sub-Saharan Africa.
The company emphasized that its board will be empowered to “enter into any agreements and/or execute any documents, appoint such professional parties, perform all such other acts and do all such other things” to facilitate the capital raise, subject to regulatory clearance.