The Nigerian Stock Exchange (NSE) Thursday announced the inclusion of Oando Plc as one of the market-making stocks on the Nigerian bourse just as existing shareholders of the firm have been urged to increase their holdings in the company via the ongoing Rights Issue.
Also included as market-making stocks are: Dangote Cement Plc and Transnational Corporation of Nigeria Plc. This has brought the number of market-making stocks to 39 stocks.
Meanwhile, shareholders of Oando have been urged to take advantage of N12 per share Rights Issue and increase their holdings so as to reap the benefits of the huge investments the integrated energy group has made over the years.
The company is shopping for N54.6 billion from existing shareholders through a rights issue of 4.548 billion ordinary shares at N12 per share. The offer opened December 28, 2012 and is expected to close on February 8, 2013.
National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, 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. The Rights Issue is therefore, an opportunity to buy more shares and wait for the returns that would come from those investments,” he said.
Speaking in the same vein, the President of Nigeria Shareholders Solidarity Association (NSSA), Chief Timothy Adesiyan, noted that the price of the issue is very attractive, considering the assets and future prospects of the company.
“As you are aware Oando Plc has huge assets in the energy sector. Its 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. The shareholders should take up their rights and increase their holdings,” Adesiyan said.
He added that with the offer priced at N12, shareholders have an opportunity to average out their investments, and stand to benefit when the share appreciates.