The listing of Oando plc Rights Issue shares on the Nigerian Stock Exchange (NSE) and the main board of Johannesburg Stock Exchange (JSE) have pushed the company’s market capitalization high to N96.672billion (about $604 million).
Oando plc shares, from the recently concluded rights issue exercise, were listed on the Nigerian Stock Exchange and on the main board of the Johannesburg Stock Exchange for trading from Wednesday (June 12, 2013). The shares were listed at N14.17kobo on the Nigerian Stock Exchange at the close of the market Tuesday.
This dual listing of Oando plc rights issue shares follows the conclusion of the company’s rights issue exercise where Oando plc succeeded in raising over N55.2 billion from the capital markets with a 101 percent subscription.
The company had issued 4.548 billion shares to existing shareholders at N12 per share in an offering that ended in February 2013.
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The rights issue allotment approval by the Securities and Exchange Commission (SEC), indicated that Oando succeeded in raising N55.2 billion. The rights issue was a very critical step towards the execution of the company’s strategic expansion plans; optimizing its balance sheet and improving its leverage positions.
Analysts are of the opinion that Oando’s investments in the high margin upstream division will transform the business significantly and increase value creation for the shareholders, whilst Stock market operators said investors’ strong belief and confidence in the potential of Oando, partly led to the successful result of the offer. They said shareholders had responded to a positive outlook based on strong market fundamentals.
The company recently acquired ConocoPhillips’ entire oil and gas assets in Nigeria, which experts say puts Oando in a unique position as an indigenous producer to increase its oil production significantly and gradually positions it as an indigenous oil major.
Before the listing on both markets, leading market analysts at FSDH Securities Limited and Meristem Securities Limited had projected a bullish run for Oando shares and a bountiful return-on-investment (RoI) for its shareholders.
