Oando Plc Begins Share Distribution, Allocates 1.28 Billion Shares to Shareholders

By Paul Onehi

Oando Plc has commenced the distribution of 1.284 billion ordinary shares, each valued at 50 kobo, to its shareholders as part of its broader share distribution scheme. This first phase, valued at approximately N89.9 billion, represents an initial step in the company’s plan to allocate up to 4.279 billion shares, currently worth around N300 billion, subject to the Board’s discretion.

According to a regulatory filing released recently, the 1.284 billion shares will be distributed in two equal tranches. The first tranche of 641.856 million shares will be allocated to shareholders who are registered with the company as of February 14, 2025, at a distribution ratio of one new ordinary share for every 12 existing shares.

The second tranche, also comprising 641.856 million shares, will be distributed to shareholders listed on the company’s register as of June 30, 2025. This decision was reached during a Board meeting held on January 30, 2025.

At Oando’s 45th Annual General Meeting (AGM) on December 17, 2024, shareholders approved a resolution allowing the company to distribute shares or their cash equivalent to eligible investors. The Board of Directors was granted the authority to determine the allocation process and timing based on a pro-rata system.

As of the AGM, Oando’s total issued share capital stood at 12.431 billion ordinary shares of 50 kobo each, with 4.279 billion shares designated as returned shares under the AGM resolutions. These returned shares may be allocated as stock or cash equivalents at the Board’s discretion over time. However, all distributions under the AGM resolution must be completed within 36 months, starting January 30, 2025.

Following the announcement, Oando’s stock price rose by 2.26% to N70 per share on the Nigerian Exchange (NGX) yesterday, reflecting growing investor confidence. The surge in share value follows Oando’s strong 2024 financial performance, where the company reported a 45% increase in turnover to N4.1 trillion, driven by higher production levels and the successful integration of newly acquired assets.