Oando, a prominent oil and gas company, has reached a market capitalization of N1 trillion, placing it among an exclusive group of companies.
This milestone follows a significant increase in its share price, which rose by 435.9% in August.
In early August, Oando announced its intention to complete a $783 million acquisition of Nigeria Agip Oil Company, a subsidiary of Eni.
This announcement contributed to increased investor interest, driving up the company’s stock price and resulting in a trading volume of 547 million shares.
With this development, Oando has joined the “Stocks Worth Over One Trillion” (SWOOTS) club, alongside other major companies such as Zenith Bank, SEPLAT, BUA Cement, and Dangote Cement.
What to Know
- Oando was the best-performing stock in August 2024, with its share price skyrocketing by 435.9% month-to-date in July.
- The stock has climbed over 700% year-to-date, as of the market opening on September 9, 2024.
- The stock is currently experiencing a strong bullish price action, buoyed by the positive sentiment surrounding the company’s performance and strategic moves.
- Positive sentiment was further bolstered by the announcement of the Agip Oil acquisition.
Acquisition Announcement
Oando officially announced the successful acquisition of Eni’s Nigerian subsidiary, Nigerian Agip Oil Company (NAOC), on August 22, 2024.
Commenting on the acquisition, Wale Tinubu, Group Chief Executive of Oando PLC, stated:
“Today’s announcement is the culmination of ten years of hard work, resilience, and an unwavering belief that we would realize our ambition. It is a win, not just for Oando but for every indigenous energy player as we take our destiny into our own hands.
“This is a new dawn for the Nigerian energy sector, and we are confident that indigenous companies will play a pivotal role in this next phase of the nation’s upstream evolution. With our assumption of the role of operator, our immediate focus is on optimizing the assets’ immense potential in contributing to our strategic objectives whilst complementing the nation’s plan to boost production outputs.”
Legal Action Against Misinformation
Recently, Oando Plc announced that it will take legal action against parties disseminating false information about its $783 million acquisition of Nigerian Agip Oil Company (NAOC).
In a statement released on Monday and signed by the company’s spokesperson, Ayotola Jagun, Oando accused certain individuals and entities of spreading misinformation regarding the acquisition of NAOC.
Oando’s assertive stance against misinformation underscores its commitment to transparency and maintaining investor confidence as it continues to chart a course for growth and industry leadership.