Oando to Raise N500bn, Convert $300m Debt to Equity
Indigenous energy company Oando Plc has revealed plans to raise N500 billion in fresh capital via public offers as part of an effort to expand its operations and convert $300 million in debt to equity amidst an expansion drive.
At the annual meeting scheduled for August 11, the energy company will be seeking shareholders authorisation to raise the amount or its foreign currency equivalent in the Nigerian and/or international capital markets.
Details obtained from its regulatory filing revealed that Oando will also be seeking shareholders’ approval to issue up to 10 billion ordinary shares of 50 kobo each, either as a standalone issue or by the establishment of capital raising programmes.
The company currently has 12,431,412,481 shares outstanding, each valued at N50.5 as of July 18. It had reached a 52-week high of N98.4 and a 52-week low of N17.45.
The company’s audited consolidated and separate financial statements for the year ended December 31, 2024, show that it almost doubled its revenue to N4.086 trillion from N2.845 trillion in 2023. The group profit was more than doubled to N224.856 billion from N61.996 billion in 2023.
“This capital raising by Oando will be either by public offerings, private placements, debt-to-equity conversions, rights issues, and/or other transaction modes, at price(s) determined through book building ….
“Or any other acceptable valuation method or combination of methods at such dates and on such terms and conditions as may be determined by the Board of Directors of the Company subject to obtaining the requisite regulatory approvals.”
Also, the Board will be seeking shareholders’ approval to enter into capital restructuring agreements with key stakeholders and lenders and convert up to $300 million out of the company’s existing reserves-based lending (RBL) debt into equity, subject to terms and conditions to be determined by the directors.
Oando plans to obtain approval from shareholders to establish a multi-instrument issuance programme in an amount up to $1.5 billion or its naira equivalent and to proceed with subsequent issuances of bonds, certificates, instruments, and/or other securities under the programmme. #Oando to Raise N500bn, Convert $300m Debt to Equity SIFAX Shipping Launches Direct LCL Export to UK
