Oando Nigeria Falls to 9-Year Low on Share Offer
Oando Plc (OANDO), which announced a share offer yesterday, fell to the lowest in nine years on concern the amount raised will be insufficient to cover debt. The stock dropped by the daily limit of 5 percent to close at 12.21 naira in Lagos, its lowest since May 2003. Oando will raise 35 billion naira ($222 million) in an offer to existing shareholders in the fourth quarter to cut debt and increase crude exploration, Chief Executive Officer Wale Tinubu said in a statement yesterday to the Johannesburg Stock Exchange.
He gave no details of Oando’s debts. Oando has expanded its operations in Africa as a top oil producer there operation includes crude and gas exploration and production, with additional plans to build a fuel-receiving terminal and refinery in Nigeria’s commercial capital, Lagos. Oando shares have fallen 45 percent this year, compared with a 24 percent rise in the Nigerian Stock Exchange All-Share Index.