Oando set to redeem promise to shareholders – Distributes 97.6billion Naira value of further shares 

Oando shareholders will obtain one new odd share for each twelve present odd shares, that means the extra shares you maintain, the extra you get.

That is in compliance with the decision reached on the Firm’s forty fifth Annual Normal Assembly (AGM) on Tuesday, December 17, 2024, the place Oando PLC shareholders authorised that “the Firm could trigger shares acquired pursuant to sub-resolution (b) above, and/or their money equal to be distributed to shareholders of document at date(s) as could also be decided by the Board of Administrators, every so often, on a pro-rata foundation.”

The shares shall be distributed in a phased strategy, with 641,856,301 odd shares of fifty kobo every being distributed to shareholders registered within the Firm’s Register of Members on the shut of enterprise on February 14, 2025 (“Qualification Date”), whereas the second part for the distribution of 641,856,301 odd shares of fifty kobo every for shareholders registered within the Firm’s Register of Members will take impact on the shut of enterprise on June 30, 2025 (“Qualification Date”), a golden alternative for retail buyers to achieve extra worth with out spending an additional kobo.

The phased distribution demonstrates the Firm’s dedication to market stability and preservation of shareholder worth. By executing the distribution in two tranches, Oando goals to handle the impression of a big share injection, stopping extreme downward strain on its share worth and making certain a extra orderly absorption by present buyers.

The Firm’s share worth grew exponentially from N10.85 in January 2024 to N66 in December 2024, and on the finish of January 2025 was nonetheless on an upward trajectory to N76, reflecting the market’s confidence in Oando’s future. The sheer magnitude of this 1.28 billion share distribution makes it the largest shareholder reward in Oando’s historical past.

In keeping with the Firm, no shareholder or worker of Firm stands to profit greater than others; this scheme serves to guard the pursuits of all shareholders, making certain equity and fairness.

This information comes within the wake of Oando’s sturdy efficiency in 2024, bolstered by its $783 Million acquisition of Nigerian Agip Oil Firm (NAOC) in August 2024, which led to a bullish enhance of over 500% in its share worth. The acquisition additionally considerably influenced the Firm’s FY 2024 {financial} outcomes, leading to a forty five% surge in income to N4.1 Trillion.

Recall that Oando acquired Nigeria Agip Oil Firm from Italian oil large Eni in August final 12 months. The Firm has turned its fortune round underneath the astute management of Wale Tinubu, a testomony to the administration’s strategic imaginative and prescient.

Constructing on 2024’s momentum, Oando introduced being awarded Block KON 13 in Angola’s Onshore Kwanza Basin in January 2025. Moreover, the Firm’s continued sturdy {financial} and operational efficiency ought to instil confidence in shareholders concerning the Firm’s prospects.

The extra shares distribution scheme is arguably of extra worth to shareholders than the inventory cut up practised by prime 100 firms like Tesla which did a 3 to 1 cut up, Alphabet did a 20:1 and Amazon did a 20:1 cut up in 2022.

The distribution affords shareholders a tangible profit and another type of Return on Funding (ROI) and it’s aligned with Oando’s dedication to delivering worth to her shareholders. It serves as an alternative to money dividends, fostering long-term shareholder retention and confidence, significantly given the present enhance within the Firm’s share worth.