Oando Plc has announced the completion of the first tranche of its share distribution to eligible shareholders, with 679,364,206 shares allocated.
This marks the first phase of a total of 1,283,712,601 shares to be distributed in two stages, after approval by the Board of Directors in January 2025.
The shares stem from a settlement arrangement endorsed at the company’s 45th Annual General Meeting in December 2024, where shareholders agreed to surrender a portion of their holdings to the company for redistribution.
Under the plan, these shares were marked for allocation to eligible shareholders in proportion to their existing stakes.
The first tranche, launched on February 14, 2025, has been completed after receiving regulatory clearance in July.
- In this round, investors received one fully paid share for every twelve they already held.
The second tranche, which will be distributed to shareholders on record as of June 30, 2025, will be announced in due course.
Merits of the distribution
Commenting on the development, Mr. Wale Tinubu, CON, Group Chief Executive of Oando Plc, said:
“This initiative reflects our unwavering commitment to delivering tangible value to our shareholders.”
He explained that by issuing one fully paid share for every twelve existing shares (with no dilution), the company effectively delivered an 8.3% yield based on the market price at the time, while also aligning shareholder interests with Oando’s long-term growth ambitions.
For shareholders, the distribution increases ownership without requiring additional investment, offers potential for value appreciation if the company performs well, and ensures fairness through a pro-rata allocation.
From the company’s perspective, the exercise will help optimize its share structure, manage the number of outstanding shares, strengthen shareholder loyalty, and maintain regulatory compliance.
Oando also urged shareholders who are yet to receive their tranche one allocation to promptly contact the company’s registrar to update their records and facilitate payment.
The share distribution is part of the company’s broader strategy to optimize operations and aligns with resolutions from an Extraordinary General Meeting held on August 12 to address capital diminution.
Resolving challenges
Oando Plc recently convened an Extraordinary General Meeting (EGM) to address the reduction in the company’s capital for the financial year ended December 31, 2024.
At the meeting, shareholders reviewed and discussed measures to resolve the capital reduction in accordance with Section 137 of the Companies and Allied Matters Act, 2020.
The EGM was held shortly after the company’s 46th Annual General Meeting (AGM) earlier the same day, where shareholders approved a range of ordinary and special business resolutions.
Among the special business approved was a capital-raising plan proposed by the board, which authorizes the company to increase its share capital by up to N500 billion.