Oando is set to distribute 1.28 billion additional shares to its shareholders as stock dividends. This means shareholders will receive extra shares at no additional cost, increasing their investment holdings.
Thank you for reading this post, don't forget to subscribe!The decision was approved at the company’s 45th Annual General Meeting (AGM) on December 17, 2024. The Board of Directors later resolved to distribute the shares in two tranches at a meeting on January 30, 2025. The total shares, valued at ₦97.56 billion based on the closing share price of ₦76 on January 30, 2025, will be allocated as follows:
• 641,856,301 ordinary shares at the close of business on February 14, 2025
• 641,856,300 ordinary shares at the close of business on June 30, 2025
Stock dividends offer shareholders flexibility, allowing them to either retain their shares or convert them into cash at their discretion. In this case, shareholders are receiving a return on investment of over 10%. The increase in shares also means a potential rise in future dividends.
By opting for stock dividends instead of cash payouts, the company aims to maintain a strong financial position while ensuring shareholders benefit from future growth. The distribution plan directly increases minority shareholders’ ownership stakes at a rate of one new share for every twelve existing shares.
This announcement follows Oando’s financial performance in 2024, which was bolstered by its $783 million acquisition of Nigerian Agip Oil Company (NAOC) in August 2024. This led to a more than 500% increase in its share price and contributed to a 45% surge in revenue to ₦4.1 trillion.
Oando also recently secured Block KON 13 in Angola’s Onshore Kwanza Basin in January 2025. The company has outlined plans to focus on cost optimization, operational efficiency, and leveraging technology to enhance productivity.
The phased distribution of shares aims to sustain stock price stability while reinforcing shareholder confidence in the company’s long-term strategy.
