Oando set to redeem promise to shareholders, distributes N97.6bn worth of additional shares

Effective 14 February, 2025, Oando shareholders will receive one new ordinary share for every twelve existing ordinary shares, meaning the more shares you hold, the more you get. This is in compliance with the resolution reached at the Company’s 45th Annual General Meeting (AGM) on Tuesday, 17 December, 2024, where Oando Plc shareholders approved that “the Company may cause shares received pursuant to sub-resolution (b) above, and/or their cash equivalent to be distributed to shareholders of record at date(s) as may be determined by the Board of Directors, from time to time, on a pro-rata basis.”

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The shares will be distributed in a phased approach, with 641,856,301 ordinary shares of 50 kobo each being distributed to shareholders registered in the Company’s Register of Members at the close of business on 14 February, 2025 (“Qualification Date”), while the second phase for the distribution of 641,856,301 ordinary shares of 50 kobo each for shareholders registered in the Company’s Register of Members will take effect at the close of business on 30 June, 2025 (“Qualification Date”). It is a golden opportunity for retail investors to gain more value without spending an extra kobo.

The phased distribution demonstrates the Company’s commitment to market stability and preservation of shareholder value. By executing the distribution in two tranches, Oando aims to manage the impact of a significant share injection, preventing excessive downward pressure on its share price and ensuring a more orderly absorption by existing investors.

The Company’s share price grew exponentially from N10.85 in January 2024 to N66 in December 2024, and at the end of January 2025 was still 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 biggest shareholder reward in Oando’s history.

According to the Company, no shareholder or employee of Company stands to benefit more than others; this scheme serves to protect the interests of all shareholders, ensuring fairness and equity.

This news comes in the wake of Oando’s robust performance in 2024, bolstered by its $783 Million acquisition of Nigerian Agip Oil Company (NAOC) in August 2024, which led to a bullish increase of over 500% in its share price. The acquisition also significantly influenced the Company’s FY 2024 financial results, resulting in a 45% surge in revenue to N4.1 Trillion.

Recall that Oando acquired Nigeria Agip Oil Company from Italian oil giant Eni in August last year. The Company has turned its fortune around under the astute leadership of Wale Tinubu, a testament to the management’s strategic vision.

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Building on 2024’s momentum, Oando announced being awarded Block KON 13 in Angola’s Onshore Kwanza Basin in January 2025. Furthermore, the Company’s continued strong financial and operational performance should instil confidence in shareholders about the Company’s prospects.

The additional shares distribution scheme is arguably of more value to shareholders than the stock spilt practised by top 100 companies like Tesla who did a 3 to 1 split, Alphabet did a 20:1 while Amazon did a 20:1 split in 2022.

The distribution offers shareholders a tangible benefit and an alternative form of Return on Investment (ROI) and it is aligned with Oando’s commitment to deliver values to her shareholders. It serves as a substitute for cash dividends, fostering long-term shareholder retention and confidence, particularly given the current increase in the Company’s share value.