Oando ₦220bn rights issue seeks NGX approval to raise fresh equity, offering one share for every two held at ₦50 per share

Oando Plc has formally applied to the Nigerian Exchange Limited for approval to list a rights issue of 4,415,867,342 new ordinary shares in a capital-raising plan expected to generate approximately ₦220.79bn in fresh equity.

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The application was disclosed in a corporate filing dated February 17, 2026, and signed by the company secretary, Folasade Ibidapo-Obe.

Under the proposal, Oando intends to offer one new ordinary share for every two existing ordinary shares held as of the qualification date, at an issue price of ₦50 per share.

The offer remains subject to regulatory clearance.

In the disclosure, the company stated that the proposed transaction requires approvals from the Securities and Exchange Commission, the Nigerian Exchange Limited, JSE Limited, and the South African Reserve Bank for shareholders based in South Africa.

Oando’s current issued share capital on the NGX stands at 12,431,412,481 ordinary shares. If fully subscribed, the new issuance would represent a significant expansion of the company’s share base.

Market analysts note that rights issues have become an increasingly strategic tool among NGX-listed firms seeking to strengthen equity positions, fund expansion initiatives, support working capital, or reinforce balance sheet resilience without taking on additional debt.

Following news of the proposed Oando ₦220bn rights issue, the company’s shares recorded a negative movement on the exchange, closing at ₦43.40 per unit.

The proposed issue price of ₦50 per share represents a premium to the recent market price, a factor that may shape shareholder participation once subscription details are finalised.

The company said further announcements would outline key dates and other salient terms of the proposed offer.

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The Oando ₦220bn rights issue marks one of the more ambitious equity fundraising efforts on the exchange this year, underscoring the company’s bid to bolster its capital structure amid evolving market conditions.