Oando Plc Seeks N500 Billion Additional Capital through Debt-to-Equity Conversion

Strategic Insights -

Oando Plc, a leading energy company, has announced plans to raise N500 billion in additional capital and convert $300 million in debt to equity as part of its expansion drive. The proposed capital raising will be undertaken through a combination of public offerings, private placements, debt-to-equity conversions, rights issues, and other transaction modes. The company aims to utilize this capital to expand its operations and improve its financial position. Oando also intends to obtain approval from shareholders to enter into capital restructuring agreements with key stakeholders and lenders, and to convert a significant portion of its existing debt into equity.

Key Takeaways:

  • Oando Plc plans to raise N500 billion in additional capital through public offerings, private placements, debt-to-equity conversions, rights issues, and other transaction modes.
  • The company aims to convert $300 million in debt to equity, subject to terms and conditions to be determined by the Board of Directors.
  • Oando intends to establish a multi-instrument issuance programme in an amount up to $1.5 billion or its naira equivalent.
  • The company will also seek 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.
  • Oando has 12.43 billion shares outstanding, with each share valued at N50.50 as of July 18.
  • The company's audited consolidated and separate financial statements for the year ended December 31, 2024, showed that revenue more than doubled to N4.086 trillion from N2.845 trillion in 2023.
  • The group profit more than doubled to N224.856 billion from N61.996 billion in 2023.

Statistics:

  • $300 million in debt to be converted to equity
  • Up to $1.5 billion or its naira equivalent to be raised under a multi-instrument issuance programme
  • 10 billion ordinary shares of 50 kobo each to be issued, either as a standalone issue or by the establishment of capital raising programmes
  • 12.43 billion shares outstanding as of July 18
  • Revenue: N4.086 trillion (2024) vs. N2.845 trillion (2023)
  • Group profit: N224.856 billion (2024) vs. N61.996 billion (2023)
  • Share price: N50.50 per share as of July 18

Sources:

  • Oando Plc Notice of Annual General Meeting released on the Nigerian Exchange.
  • Oando Plc audited consolidated and separate financial statements for the year ended December 31, 2024.