Oando should enter the Guinness
book of world record as the most “CAPITAL SEEKING FIRM” in the world! The
company’s penchant to always raise capital either from the capital or money
market is quite alarming. It vividly shows how management of Oando lacks foresight.
A company that pays dividends to its investors today will tomorrow be seeking
for fresh cash from the same investors!
A brief history of Oando capital
raising exercise from the capital market alone is given below-
In 2004, Oando raised N15bill from
the Nigeria capital market through a right issue which was offered at N95 Naira
per share and a public offer which was sold at N97.50 per share.
In 2010, Oando sought for fresh
funds again and investors turned up by over-subscribing the right offer. In
2010 the company raised N21.1bill by issuing 301,694,876 units of share at N70
through rights issue.
Again in January 2013 Oando wooed
its shareholders again and was able to raise almost N55bill by issuing
4.548bill units of shares at N12 per unit.
And now, still in the same 2013 the
company is trying to raise additional N30.7bill through special placement!
The above excludes the money the
company has raised from the money market, all this endless capital raising give
rise to a question “Is Oando a fund management firm?
All questions, advice and comments will be positively received.
Twitter- @1himself
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