Nigeria’s largest oil palm producer, Presco Plc, said it has completed its Rights Issue, which recorded a 103 percent subscription level, reflecting strong shareholder participation and investor confidence in the company’s strategic direction and long-term growth outlook.
“The Rights Issue attracted demand in excess of the offer size, underscoring sustained investor appetite for Presco Plc’s equity and a clear willingness by shareholders to increase their investment in the business,” the oil palm maker said in a statement on the Nigerian Exchange.
The oversubscription follows the announcement to raise as much as N237 billion to fund its expansion plans, support operational efficiency and finance strategic acquisitions, including targeted investments in complementary agribusinesses in the agro-allied sector.
Read also: Presco acquires 10,000 hectares Nsadop, Boki plantations in new expansion drive
The company described the development as “noteworthy” given a cautious capital-market environment characterised by tightening liquidity and selective investor participation, stressing that Presco’s ability to exceed its offer size highlights the depth of confidence it continues to command among institutional investors, pension fund administrators, and retail shareholders.
The oversubscribed rights issue 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. This is as the company acquired 10,000 hectares of Nsadop and Boki plantation in its expansion move.
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.
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“Beyond signalling investor confidence, the successful Rights Issue strengthens Presco Plc’s financial position, providing greater balance-sheet capacity to support business expansion and disciplined strategic execution,” Presco said.
“Overall, the oversubscribed Rights Issue further consolidates Presco Plc’s standing as a credible and well-regarded issuer within the Nigerian capital market. The strong participation underscores confidence not only in the Company’s current performance, but also in its long-term vision and growth trajectory.”