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By Chukwuma Umeorah
Oando PLC has completed the first tranche of its Share Distribution Programme, issuing 679,364,206 fully paid shares to eligible investors on its register as of February 14, 2025. The allocation, at a rate of one new share for every twelve existing shares, followed regulatory approval in July and represents part of a 1.28 billion-share distribution plan approved by shareholders at the company’s 45th Annual General Meeting in December 2024.
The Group Chief Executive of Oando, Wale Tinubu, said the initiative was designed to create value for investors without diluting their holdings. “This initiative underscores our unwavering commitment to delivering tangible value to our shareholders. By issuing one fully paid share for every twelve existing shares, with no dilution, we have effectively delivered an 8.3 per cent yield at today’s market price thus aligning shareholder’s interests with our long-term growth ambitions,” he said.
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The share issuance stemmed from a settlement arrangement approved at the AGM, where shareholders consented to surrender a portion of their shares to the company for redistribution on a pro-rata basis. The second tranche of the programme, which will apply to shareholders on the register as of June 30, 2025, will be executed at a later date subject to board approval, Oando disclosed in a statement issued by its Company Secretary, Folashade Ibidapo-Obe.
The share redistribution, it stated, comes at a time when Oando had been consolidating its position as one of Africa’s leading indigenous energy companies. In August 2024, the firm completed the $783 million acquisition of the Nigerian Agip Oil Company, described as one of the largest oil and gas deals in recent years. Oando states that this latest share distribution will strengthen investor confidence and support its long-term expansion strategy.
