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Presco Plc, Nigeria’s largest fully integrated agro-industrial palm processor, chaired by Rasheed Sarumi, has announced plans to raise N237 billion ($165 million) through a rights issue, following approvals from shareholders, regulators, and the Nigerian Exchange. It is a new phase in Presco’s effort to expand its footprint and strengthen its position in the edible oil market.
The capital raise, endorsed at the company’s Annual General Meeting on Aug. 19 and cleared by the Securities and Exchange Commission and the NGX, will see 166.67 million shares offered to existing shareholders at N1,420 ($0.98) per share. The offer will be on the basis of one new share for every six held as of the qualifying date.
Presco eights issue to fund expansion
Presco said proceeds from the rights issue will be used to fund both new and ongoing projects, including Greenfield and Brownfield developments already nearing completion. It will also support the group's long-term industrial expansion aimed at boosting production capacity and improving operational efficiency.
Managing Director Reji George described the capital raise as a significant step in the company’s long-term growth plan. “Over the years, we have built a resilient business through disciplined investments and consistent performance,” he said. “This additional capital will enable us to strengthen our operations, scale our presence, and deliver long-term value to our shareholders, employees, and the communities where we operate.”
George added that Presco remains committed to developing large-scale agribusiness projects that promote food security, job creation, and value addition. “Our goal is to deepen our leadership in Nigeria’s oil palm industry through sustainable investments that improve productivity and profitability,” he said. “This rights issue gives us the financial strength to move faster toward that goal.”
Presco doubles revenue under Rasheed Sarumi
Operating from Edo State and listed on the NGX, Presco runs extensive plantations, mills, refining units, and packaging plants. It also produces biogas from its operations, supporting cleaner energy use. It remains one of West Africa’s few fully integrated palm oil processors and a key player in Nigeria’s efforts to cut imports and boost local production.
Since Rasheed Sarumi became chairman in May 2024, Presco has recorded strong financial performance. For the nine months ended Sept. 30, 2025, profit rose to N110.79 billion ($75.7 million) from N51.76 billion ($35.4 million) a year earlier. Revenue nearly doubled to N274.5 billion ($187.5 million), helped by higher palm oil prices and increased production.
The company said its improved results reflect stronger efficiency, better yields, and stable consumer demand despite economic pressures. Total assets rose to N612.8 billion ($419.7 million) as of Sept. 30, 2025, from N475.1 billion ($325.2 million) at the end of 2024, while retained earnings grew to N195.5 billion ($133.9 million).
