Oando Plc plans $164 million rights issue to strengthen its capital base

Oando Plc., one of Nigeria’s leading oil and gas companies led by Wale Tinubu, has filed for over $164 million rights issue on the Nigerian Exchange, reflecting a decisive step towards reinforcing its balance sheet.

The proposed N220.8 billion ($164.44 million) capital raise will issue 4.42 billion new shares at N50 each, offering one share for every two held. If fully subscribed, the funds will strengthen Oando’s equity, support upstream investments, and improve operational efficiency. The transaction awaits regulatory approvals from SEC Nigeria, NGX, JSE, and the South African Reserve Bank.

Oando rights issue, strategic impact on Nigeria oil sector
The rights issue remains subject to regulatory approvals from the Securities and Exchange Commission Nigeria, NGX, JSE Limited, and the South African Reserve Bank, reflecting Oando’s dual-listing structure and cross-border shareholder base. Further details, including offer timelines, are expected in subsequent announcements.

The capital raise comes at a pivotal time for Nigeria’s oil and gas sector, as indigenous operators consolidate positions following asset divestments by international oil companies. Strengthening its capital structure positions Oando to accelerate upstream investments, optimize production assets, and improve operational efficiency amid fluctuating crude prices and currency volatility.

For the Nigerian energy giant, the rights issue is a strategic move to enhance liquidity, reduce leverage, and bolster investor confidence. By offering existing shareholders the opportunity to maintain their proportional ownership, Oando also signals alignment with long-term investors while raising substantial growth capital.

Acquisition boosts upstream production capacity
The transaction underscores renewed activity in Nigeria’s capital markets, where companies are increasingly turning to equity financing to navigate regulatory shifts and expansion opportunities. If successfully executed, Oando’s proposed rights issue could rank among the most significant equity offerings in the country’s energy sector in recent years.

As Africa’s energy transition gathers pace and domestic operators take on larger production roles, Oando’s recapitalization effort highlights its ambition to remain a dominant indigenous player—well-capitalized, strategically positioned, and prepared to compete in a rapidly evolving industry landscape.