The currently ongoing Oando Rights Issue is expected to raise N54.6 billion from the company’s existing shareholders via the issuance of 4.5 billion ordinary shares at N12/share.
According to Sunny Nwosu, the National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), investors should take positions in the stock now as it will offer future dividends in the form of returns and other capital yields.
He said, “Shareholders should embrace the shares as a future stock. The company has made good investments in the energy sector, and very soon, the benefits will begin to manifest.
“This Right Issue is, therefore, an opportunity to buy more shares and wait for the returns that would come from those investments.”
Also the price of the rights issuance was described as attractive by the President, Nigeria Shareholders Solidarity Association, Chief Timothy Adesiyan.
He stated, “As you are aware, Oando Plc has huge assets in the energy sector. It operations were only affected by the challenges in the environment. But I believe the bad times are over. The company has a very bright future and I have so much confidence in the business they are into. The price of N12 for the offer is an opportunity no shareholders should miss, ”