An indigenous energy company, Oando Plc, is planning to raise fresh N500 billion from the capital market from the issuance of about 10 billion ordinary shares of 50 Kobo each.
The firm also wants to convert about $300 million out of the organisation’s existing Reserves-Based Lending (RBL) debt into equity, subject to terms and conditions to be determined by the board.
However, before carrying out these actions, shareholders will have to give their approval and this would be sought at the 46th Annual General Meeting (AGM) of Oando slated for August 11, 2025.
According to a notice from the firm, the board of Oando will request the authorisation of shareholders for the establishment of a multi-instrument issuance programme in an amount up to $1.5 billion or its Naira equivalent for subsequent bond issuances, certificates, instruments and/or other securities under the programme, at such time and on such terms and conditions to be determined by the directors subject to obtaining all relevant regulatory approvals subject to terms and conditions to be determined by the board.
Further, the board will propose to the company’s existing investors to an approval to accept surplus monies arising from any potential oversubscription from the capital raising programmes, in such proportion as may be determined by the board, subject to obtaining the relevant regulatory approvals.
It was stated that N500 billion to be sourced from the capital market could be from 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 subject to obtaining the requisite regulatory approvals.