Oando Seeks NGX Approval to Raise N220.8bn via Rights Issue

Oando is Looking to Raise N220.8 Billion

Oando PLC, one of the biggest energy brand names in Nigeria, is making a major financial move to grow its finances. Oando has recently submitted an application to the Nigerian Exchange (NGX) to permit them raise about N220.8 billion through a proposed "Rights Issue."

https://www.oandoplc.com/press-release/oando-plc---proposed-rights-issue

If you’re wondering what that means for the company and its shareholders, hereis a simple breakdown.

In a corporate filing dated February 17, 2026, and signed by company secretary Folashade ibidapo-Obe, the company disclosed its application on February 13 for approval to sell over 4.4 billion new shares of 50 kobo each.

In a "Rights Issue," a company doesn’t just sell shares to the general public. Instead, they give their existing shareholders the first chance to buy more skin in the game. It’s like a "members-only" sale before the doors open to everyone else.

If you want to know the implications of this move for the company and its shareholders, here is the simplified explanation.

The Deal for Shareholders

If you already own Oando shares, here are the quick facts:

• The Ratio: For every two shares you currently own, you get the right to buy one new share.

• The Price: Each new share will cost N50.

• The Deadline: To qualify, you must have owned your shares by the close of business on February 13, 2026.
  

This is one of the largest money-raising efforts we’ve seen on the Nigerian stock market lately. Currently, Oando’s stock is trading around N44, but they are asking shareholders to pay N50 for the new ones.

While paying a bit more than the current market price might seem surprising, it shows the company is confident about its future value. By raising money this way, Oando gets a huge pile of cash without having. 

Options for interested investors

If you are an eligible shareholder, you have three main choices once the offer officially opens:

1. Buy in full: Buy all the new shares you are entitled to so you keep your same percentage of ownership in the company.

2. Buy some (or none): You can buy just a few or ignore the offer entirely. Just keep in mind that if you don't buy, your "slice of the pie" in the company will get smaller (this is called dilution).

3. Trade your rights: Depending on the final rules, you might be able to sell your "right to buy" to someone else.

Next

Oando is still waiting for the final "green light" from regulators in both Nigeria and South Africa (since they are listed in both countries). Once they get the "okay," they will announce the official dates for when you can pay and claim your new shares.

While Oando hasn't said exactly how they’ll spend the N220.8 billion, experts believe the money will go toward paying off old debts and investing in new oil and gas projects to boost production.