Oando applies to list N220.8bn rights issue on NGX

OANDO Plc has formally notified its shareholders of a major capital-raising move, announcing that it has applied to list a new rights issue on the Nigerian Exchange Limited (NGX).

In a notice issued to the investing public, the energy company disclosed that on Friday, 13 February 2026, it submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue comprising 4,415,867,342 ordinary shares of 50 kobo each, priced at N50.00 per share.

The proposed offer will be made on the basis of one new ordinary share for every two existing ordinary shares held by shareholders as at the qualifying date. This means that eligible investors will have the opportunity to increase their equity stake in the company at a fixed price, subject to regulatory clearan, said the notice signed by Company Secretary, Folasade Ibidapo-Obe, and Group Chief Financial Officer, Adeola Ogunsemi.

At the offer price of N50 per share, the rights issue is expected to raise approximately N220.8 billion in fresh capital for the company, positioning Oando to strengthen its balance sheet and support its long-term growth strategy across its energy businesses.

According to the company, the proposed transaction is still subject to a number of regulatory approvals before it can proceed. These include clearances from the Nigerian Securities and Exchange Commission (SEC), JSE Limited, and the Reserve Bank of South Africa, in addition to final approval from NGX. The involvement of South African regulators is due to the company’s shareholder base and cross-border regulatory obligations.

READ ALSO: Again, Tinubu-led Oando slips into technical insolvency

Oando Plc stated that once all required approvals are secured, it will release a further announcement detailing the key dates for the exercise. These will include the qualification date, opening and closing dates of the offer, and instructions to shareholders on how to take up their rights or trade them on the exchange.

The company also assured shareholders that more information on the purpose and application of the funds to be raised will be communicated in due course, as part of the offer documentation.

The board encouraged shareholders to remain attentive to official communications and advised them to seek professional guidance where necessary while the approval process is ongoing.

Technical insolvency

Economy Post had reported that Oando Plc, led by Mr Wale Tinubu, slipped into technical insolvency in 2025 as its liabilities exceed assets despite posting a profit of N241 billion.

The full-year financial statement posted by the oil major in the Nigerian Exchange (NGX) showed that the group reported a profit of N241.312 billion in 2025, representing just 9.6 percent growth over 2024 when the oil major made a N220.120 billion profit in 2024.

The firm’s revenue jumped by 27.2 percent in 2025 to N4.087 trillion in 2025, from N3.213 trillion recorded in the corresponding period of 2024.

However, the oil giant is in financial trouble as its liabilities stood at N7.258 trillion, while assets stayed at N6.704 trillion. This means that Oando owes more than it owns, not minding that it recorded profits in 2025. Its currrent ratio is quite revealing.

The current ratio measures a company’s capacity to pay its short-term liabilities due in one year, according to the Corporate Finance Institute. A good current ratio is typically considered to be anywhere between 1.5 and 3. Oando’s current ratio is just 0.31, which is considered really low. If current assets are less than current liabilities, an entity has a working capital deficiency, also called a working capital deficit and negative working capital, financial experts say.

Oando Plc had been in this situation earlier. Its total assets by December 2022 stood at N1.252 trillion, while total liabilities were put at N1.449 trillion. In 2023, total liabilities stood at N3.379 trillion whereas total assets were put at N1.512 trillion, representing a ratio of 2.23, which was a damning representation of Oando Plc’s financial situation at that time.