Rand Merchant Bank (RMB) Nigeria Limited has completed its role as lead issuing house on Presco Plc’s N236 billion rights issue. The deal was the largest non-financial services public equity raise in Nigeria in 2025, according to details of the transaction.
The offer was oversubscribed by about 3 percent, indicating strong participation from existing shareholders and continued investor appetite for equity capital in the agro-industrial sector. The funds raised are expected to support Presco’s expansion plans across its oil palm operations and help address Nigeria’s structural supply shortfall in edible oils.
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Presco, which has operated in Nigeria for more than three decades, is one of the country’s largest integrated palm oil producers. The company has increasingly relied on the equity market to fund capacity expansion and improve output, as high interest rates continue to make debt financing less attractive for manufacturers and agro-processors.
RMB Nigeria was responsible for structuring and executing the transaction, coordinating regulatory approvals and managing investor engagement. The rights issue was completed within four months of shareholders granting approval, despite tight regulatory timelines.
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Speaking on the transaction, Chidi Iwuchukwu, executive director and head of investment banking at RMB Nigeria, said the oversubscription reflected market confidence in Presco’s long-term strategy and growth outlook. He noted that the transaction also demonstrated the ability of the Nigerian capital market to absorb large equity issuances outside the banking sector.
Bimbo Oyeyiga, head of corporate finance at RMB Nigeria, said the capital raise was significant for the agro-allied sector, adding that it should strengthen Presco’s market position and support its long-term investment plans. He also pointed to the deal as further evidence of investor willingness to back companies with clear expansion strategies.
Presco’s rights issue adds to a growing list of large equity raises on the Nigerian Exchange in 2025, as corporates increasingly turn to the market to shore up balance sheets and fund growth amid elevated borrowing costs.