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Oando PLC, one of Nigeria’s leading energy groups, which has a primary listing on the Nigerian Stock Exchange and a secondary listing on the Johannesburg Stock Exchange, has announced the results of its recent Rights Issue. The issue which opened on January 25 and closed on February 19 and was expected to raise 21 billion Naira, returned 128% subscribed.
“We are extremely pleased with the positive reaction to our rights issue inspite of the seeming apathy to capital market investments. This is an indication of the confidence of investors in our ability to optimise resources to create superior returns. These funds will complement our ongoing strategy of investing in high margin businesses as well as supporting our expansion plans to take maximum advantage of opportunities within Africa’s energy landscape,’ said Oando’s Group Chief Executive, Mr. Wale Tinubu
In 2004, Oando raised N16billion, the highest at that time by a non-financial institution, through a rights issue and public offering at that time. The funds realised accelerated the company’s transformation from a downstream business into one of Nigeria’s largest indigenous energy groups.
Oando which has six business divisions namely – Exploration & Production, Energy Services, Gas & Power, Marketing, Supply & Trading, and Refining & Terminals, on April 12, 2010 announced results for the year ending December 31, 2009. Its Pre-Tax profits increased by 21% to N10.1billion compared to N8.3 billion same period in 2008, while earnings per share increased by 23%. Over the last five years, growth in profitability has averaged 50% year on year.
