Oando shareholders approve ₦500 billion capital raise, debt restructuring

Shareholders of Oando Plc have granted approval for an extensive ₦500 billion capital-raising and debt restructuring plan, as the energy firm positions itself to stabilize its finances.

At the company’s 46th Annual General Meeting held on Monday, resolutions passed include authorization to issue up to 10 billion new ordinary shares (50 kobo each), potentially raising ₦500 billion or its foreign currency equivalent.

The board may execute this through a combination of public offerings, private placements, debt-to-equity conversions, rights issues, or other capital market instruments.

Additionally, the company is empowered to convert up to US$300 million of its Reserves-Based Lending debt into equity, and to launch a multi-instrument issuance programme worth up to US$1.5 billion, enabling the issuance of bonds, certificates, and other securities pending regulatory approvals.

Shareholders also okayed using oversubscription proceeds, if any, and adjusting company share capital—including cancelling unallotted shares.

More resolutions

The AGM also endorsed the re-appointment of BDO Professional Services as external auditors and the re-election of directors Mrs. Nana Fatima Mede, Mrs. Ronke Sokefun, and Dr. Ainojie Irune.

Two new directors—Mr. Cosmas Iwueze and Ms. Ayotola Jagun — were elected, and the remuneration for non-executive directors was approved. Shareholders further ratified related-party transactions “on normal commercial terms consistent with the Company’s Transfer Pricing Policy” and approved membership for the statutory audit committee.

The fundraising and restructuring drive arrives as Oando grapples with liquidity constraints and efforts to expand its upstream portfolio following its acquisition of NAOC assets. The move is aimed at shoring up the balance sheet and tapping fresh capital for operational stability and growth.

On the Nigerian Exchange, Oando shares closed Tuesday at ₦52.95, slipping slightly from yesterday’s ₦53.00, with trading volumes around 1.35 million shares.