Oando Floats N5bn Shares on Offer
Oando Plc has commenced the process of raising N5 billion from the capital market through a combined rights issue and offer for subscription.
This was the result of the successful Completion Board Meeting held by the company at the weekend where all the parties to the Issue signed the necessary document authorising the offer.
The company is offering by way of rights of 20,384,957 ordinary shares of 50 kobo each at N95 per share to existing shareholders, in addition to offer for subscription of 31,419,785 ordinary shares of 50 kobo each at N97.50 per share to the public.
Both offers open on August 27, 2004. The public offer closes on September 24, 2004, whilst the offer by way of rights closes on October 6, 2004.
The issuing house for both offers is FCMB Capital Markets. The company explained that the proceeds of the combined offer would be channeled towards achieving Oando's growth objectives and restructuring of its existing finances.
Oando planned to use the proceeds of the offer to fund working capital and to execute the following strategic projects:
Refinancing of its investment in Gaslink Nigeria Limited Calabar Terminal and Jetty
Building of small terminals in Calabar.
Refinancing of its investment in Gaslink Nigeria Limited.
Calabar Terminal and Jetty.
Building of small terminals in Calabar. . Apapa Terminal
Construction of additional storage tanks, repair of roads and street lighting as well as the modernization of Environmental, Health and Safety Equipment in the Terminal.
Port Harcourt Terminal
Expansion of storage facility, construction of pipeline and installation of fire hydrant system.
Lubes and Specialties
API pit and fire hose to improve the Environmental, Health and Safety standards at the Warri LPG Plant.
Bitumen Plant Port Harcourt
Provide equipment for cleaning and ensuring Environmental, Health and Safety compliance.
Kaduna Lube Plant
Expansion of the plant equipment by installing automatic capping and labeling machine.
Expansion of Lagos facilities and commencement of aviation services in Port Harcourt.
Also, the company planned to further enhance its networking and communications system by purchasing and implementing an Enterprise Business Application.
It could be recalled that Oando announced projection of over N216 billion revenue to be achieved by 2008.
The Managing Director/Chief Executive, Mr. Wale Tinubu disclosed this in Lagos, during a presentation of facts behind the figures of Oando to market operators.
Wale who presented the company's score card to the operators disclosed that Oando planned for the future was to drive the revenue base.
"We want to be big in surviving oil industry. We will introduce chemical. We are number one in practically every single colour line. We are an Information Technology compliant company and we have got VSAT running around the country," he disclosed.
Tinubu announced that Oando will be spending about N100 million in training its staff.
He disclosed further that "we will offer telephone, fast food services and supermarket services. We want to offer those services going forward as competition for customers. We are going to be number one in shareholder value, number one in quality of products, staff salaries, remuneration. We will go to extra miles to deliver what we are going to deliver. We will ensure that our services are uncompromised."
He announced that Oando is building a mega tank in Lagos and in Apapa, while it has secured a deep draft location which will seriously be able to bring it at a cheaper cost because the ship will be bigger. It will commence construction this year.
The Oando boss also announced that the company will commence haulage of petroleum products by rail, even as it has the Nigerian Airways Corporation's deposit of N50 million to the contract service.
"We are refurbishing a five locomotive tank which is almost finished now and 100 tanks wagon. We have established a customer care unit. In terms of gas link, we have made the move of delivering gases at door steps. Oando company will maintain its standard as the leader supplier of large scale products," Tinubu added.
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