Oando's N21b rights issue oversubscribed by 28 per cent
Category: Capital Market
April 22, 2010
Oando Plc, one of Nigeria's leading energy groups, which has a primary listing on the Nigerian Stock Exchange and a secondary listing on the Johannesburg Stock Exchange, has announced the result of its recent rights issue.
The issue, which opened on January 25 and closed on February 19, to raise N21 billion, returned 128 per cent subscribed."We are extremely pleased with the positive reaction to our rights issue inspite of the seeming apathy to capital market investments. This is an indication of the confidence of investors in our ability to optimise resources to create superior returns."These funds will complement our ongoing strategy of investing in high margin businesses, as well as supporting our expansion plans to take maximum advantage of opportunities within Africa's energy landscape," said Oando's Group Chief Executive, Mr. Wale Tinubu.
In 2004, Oando raised N16 billion, the highest at that time by a non-financial institution, through a rights issue and public offering at that time.The funds realised accelerated the company's transformation from a downstream business into one of Nigeria's largest indigenous energy groups.Oando, which has six business divisions namely - Exploration and Production; Energy Services; Gas and Power; Marketing, Supply and Trading; and Refining and Terminals, on April 12, 2010, announced results for the year ending December 31, 2009.
Its pre-tax profits increased by 21 per cent to N10.1 billion compared to N8.3 billion in the same period in 2008, while earnings per share increased by 23 per cent. Over the last five years, growth in profitability has averaged 50 per cent year on year.