Renaissance Capital estimates Oando PLC’s fair equity value at N1.53 trillion. The company currently trades at a market capitalization of approximately N320 billion. Analysts suggest investors are overlooking substantial oil and gas reserves due to debt concerns.
Oando plans a N500 billion capital raise to address negative shareholders' equity. The recapitalization includes a N200 billion rights issue and a $1.5 billion bond program. The plan also involves converting $300 million of reserve-based lending into equity. Management expects the move to restore positive equity and reduce company gearing.