Oando Plc, the indigenous energy firm dual-listed on the Nigerian Exchange Limited (NGX) and the Johannesburg Stock Exchange (JSE), has successfully concluded the first phase of its landmark Share Distribution Programme, issuing over 679 million fully paid shares to eligible shareholders without any dilution.
The distribution, approved at the company’s 45th Annual General Meeting in December 2024, was part of a settlement arrangement involving the surrender of shares to Oando, followed by a pro-rata allocation to existing investors.
In January 2025, the Board sanctioned the first phase, involving 1.28 billion shares in two tranches.
A disclosure filing on the Nigerian Exchange on Friday stated that the just-completed Tranche One saw the allocation of 679,364,206 shares to shareholders on the company’s register as of February 14, 2025.
Following regulatory clearance in July, the company issued one fully paid share for every twelve existing shares held—representing an 8.3% yield based on prevailing market prices.
Importantly, the distribution comes without any dilution of shareholder value, a move analysts see as both investor-friendly and strategically aligned with Oando’s growth trajectory.
Group Chief Executive, Wale Tinubu, CON, said the programme reinforces the company’s commitment to delivering tangible returns to investors.
“By issuing one fully paid share for every twelve existing shares, with no dilution, we have effectively delivered an 8.3% yield at today’s market price, thus aligning shareholder interests with our long-term growth ambitions,” Tinubu stated.
The initiative underscores Oando’s broader strategy to optimise shareholder value while maintaining capital strength. Industry watchers note that the distribution not only rewards investor loyalty but could also deepen market liquidity for the stock ahead of further corporate actions.
Tranche Two of the programme will cover shareholders on the register as of June 30, 2025, with timing to be announced by the Board in due course.
The remaining 604,348,395 shares earmarked for this tranche will further reinforce Oando’s distribution pledge.
The company has urged shareholders yet to receive their allocation to contact the registrars promptly to update their records and enable settlement.
Oando, one of Africa’s foremost integrated energy providers, operates across the value chain—from upstream exploration and production to energy trading and renewables. Its presence on both the NGX and JSE positions it as a unique player in bridging African and international investor interests.
Market analysts suggest the 8.3% yield is a notable signal of management’s confidence in the company’s performance and future prospects. For investors, it represents a rare instance of significant shareholder return in Nigeria’s oil and gas sector, where capital preservation has often taken precedence over direct distributions.
With Tranche Two on the horizon, Oando’s approach to equity distribution could serve as a model for other Nigerian corporates seeking innovative shareholder reward mechanisms amid a challenging macroeconomic environment.
For now, shareholders can bank on a tangible gain—one that not only adds to portfolio value but also strengthens investor alignment with Oando’s long-term ambitions.
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
