Oando targets N500bn capital raise
Oando Plc has announced plans to raise up to N500bn in additional capital through a mix of equity and debt instruments, subject to shareholder approval at its upcoming 46th Annual General Meeting.
According to the notice of meeting filed with the Nigerian Exchange Limited on Monday, the capital raise is aimed at strengthening the company’s financial position and enabling it to pursue new business opportunities.
The company stated, “The Company is and is hereby authorised to raise additional capital of up to N500m or its foreign currency equivalent in the Nigerian and/or international capital markets through the issuance of up to 10 million ordinary shares of 50 kobo each, either as a standalone issue or by the establishment of capital raising programmes, whether by way of public offerings, private placements, debt-to-equity conversions, rights issues, and/or other transaction modes.”
The proposed capital raise would be executed at prices to be determined through book building or other acceptable valuation methods and will be subject to requisite regulatory approvals.
Oando also plans to restructure its reserve-based lending facility by converting up to $300m of the existing debt into equity.
The notice reads, “The Board is and is hereby authorised to enter into capital restructuring agreements with key stakeholders and lenders and convert up to US$300m out of the Company’s existing Reserves-Based Lending debt into equity, subject to terms and conditions to be determined by the Directors.”
In addition, the company is seeking approval to establish a multi-instrument issuance programme of up to $1.5bn or its naira equivalent. This would allow the company to issue bonds, certificates, or other securities as needed.
Shareholders will also vote on a proposal to increase Oando’s share capital from N5bn to N20bn by creating 30bn additional ordinary shares of 50 kobo each. The company stated that “Further to the approvals granted… the Board be, and is hereby, authorised to pass the relevant resolutions increasing the company’s share capital by the specific number of new ordinary shares required for the respective capital raising programmes.”
Shareholders will also consider the reappointment of BDO Professional Services as auditors, approve directors’ remuneration, elect members of the statutory audit committee, and consider resolutions relating to transactions with related parties.
