Nigeria’s largest crude palm oil producer, Presco Plc, has announced plans to raise as much as N237 billion in working capital push, through a rights issue to existing shareholders.
The rights issue, which was approved by the shareholder at Presco’s Annual General Meeting held on 19 August 2025, will be deployed towards augmenting working capital to support operational efficiency and financing strategic acquisitions, including targeted investments in complementary agribusinesses in the agro-allied sector, establishing a financial buffer to drive both domestic and international expansion initiatives.
It will also provide existing shareholders with the opportunity to increase their equity holdings in the company, thereby reinforcing their participation in Presco’s long-term vision.
“This Rights Issue marks a pivotal moment in Presco’s journey. It enables us to consolidate our leadership in the agro-industrial sector, fund strategic acquisitions, provide needed working capital and reinforce our balance sheet to pursue local and international business expansions,” Reji George, MD/CEO of Presco Plc said at the formal signing ceremony on Thursday.
“We are committed to building long-term value for our shareholders and contributing meaningfully to Nigeria’s food security and industrial growth.”
Under the terms of the offer, Presco Plc will issue 166,666,667 ordinary shares of 50 Kobo each at an issue price of N1,420 per share, on the basis of one (1) new ordinary share for every six (6) existing ordinary shares held. The qualification date for determining eligible shareholders is October 13, 2025.
According to the company, the lead issuing house for the Rights Issue is Rand Merchant Bank Nigeria Limited, with joint issuing houses including Coronation Merchant Bank Limited, Afrinvest Capital Limited, CardinalStone Partners Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, Greenwich Merchant Bank Limited, SCM Capital Limited and Stanbic IBTC Capital Limited.
The capital raise follows the announcement of the 100 percent acquisition of an equity stake in Ghana Oil Development Company (GOPDC) and Saro Oil Palm Limited (SOP) in a combined deal worth $171.6 million.
It also follows the more than a decade profit growth made by the oil palm giant in the nine months to September which surged by 114 percent to N110.8 billion, compared to N51.8 billion recorded last year. That’s equally 42.4 percent higher than the total income posted in the full year of 2024.
Presco revealed that the full terms and conditions of the rights issue will be detailed in the ‘Rights Circular’, which will be distributed directly to shareholders.
“The Circular will include a Provisional Allotment Letter and Participation Form, outlining the procedures for subscription. All shareholders and prospective investors are strongly advised to read the Rights Circular thoroughly. Where in doubt, they should seek guidance from their Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other professional adviser prior to subscribing.”
Building on this momentum, Presco reaffirms its confidence in Nigeria’s agricultural potential and its commitment to advancing industrial-scale agribusiness that supports national food security, employment, and value addition.