Presco Plc has secured shareholder approval to raise up to N250 billion in fresh capital through a Rights Issue, marking a significant step in the company’s growth and expansion plans.
The resolution was one of several passed at its Annual General Meeting (AGM) held on 19 August 2025, details of which were disclosed in a filing on the Nigerian Exchange (NGX).
Presco explained that the Rights Issue will be executed through the issuance of ordinary shares, on terms and conditions to be set by the Board.
Any shares not taken up by qualifying shareholders may be offered to other interested investors, ensuring full subscription.
Shareholders also gave the Board flexibility to strengthen the company’s capital structure through a combination of debt and equity financing, to be undertaken in tranches and on terms the Directors consider appropriate.
In addition, the AGM approved a revised remuneration package for non-executive directors, raising their fees to N349 million for 2025 from N152.7 million in 2024, along with a sitting allowance of N56.3 million.
Shareholders also approved the dividends of 2023 and 2024 financial years, noting that they remain subject to withholding tax at the applicable rate.
According to the disclosure on NGX, shareholders ratified the dividend of N26.30 per 50 kobo share, amounting to N26.3 billion, paid from the profit of the 2023 financial year.
For 2024, the Board declared a higher dividend of N42 per 50 kobo share, translating to a total payout of N42 billion.
In value, the 2024 dividend represents a yield of 2.8%, a year-on-year increase of 59.7%, and a payout ratio of 53.99%.
The announcement follows Presco’s half-year 2025 results, in which the company reported a pre-tax profit of N111.8 billion, highlighting its ability to sustain shareholder returns.
From Presco’s latest financial statement, the company reported a pre-tax profit of N53.2 billion for the quarter ended June 30, 2025, up 156% from N20.7 billion.
This strong performance lifted half-year pre-tax profit to N111.8 billion, marking a 121.8% increase compared with H1 2024.
The growth was driven by a sharp rise in revenue, which surged 130.8% year-on-year in Q2 to N104.9 billion, bringing total half-year sales to N198.7 billion, nearly double the N88 billion recorded in H1 2024.
While the cost of sales increased 30.4% to N17.8 billion, strong top-line growth pushed gross profit to N87.1 billion, up from N31.7 billion a year earlier.
Presco’s balance sheet also showed continued strength, with total assets rising 29% to N612.9 billion and retained earnings climbing sharply to N220.6 billion from N126.7 billion at the end of 2024.
Presco’s balance sheet also showed continued strength, with total assets rising 29% to N612.9 billion and retained earnings climbing sharply to N220.6 billion from N126.7 billion at the end of 2024.