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Oando Plc has kicked off the second tranche of its previously approved share dividend programme, taking another step in a multiyear plan to reward investors with additional equity.
The initiative was first cleared by shareholders at the company’s annual general meeting in late 2024. At the time, investors gave the board the green light to issue new ordinary shares in phases, distributing them proportionally over a defined period rather than in a single sweep.
Altogether, the programme will see 1.28 billion shares distributed over time.
In this latest round, the board signed off on the release of more than 600 million ordinary shares to investors who were on the company’s register by the cut off date. The allocation will be done proportionally, so shareholders receive extra shares based on how much they already own.
The company expects to wrap up this second phase before the quarter runs out.
Instead of releasing all the shares in one go, Oando is taking its time. The thinking is straightforward: build up its capital position without putting sudden pressure on the stock in the market.
That slower rollout is part of a wider capital strategy. By spacing out the issuance, Oando is trying to reward shareholders while keeping the share price steady and maintaining investor confidence.
Analysts say stock dividend programmes can serve several purposes. Beyond rewarding shareholders, they can help companies reorganise capital, improve share liquidity and align long-term investors more closely with the company’s growth trajectory.
For Oando, the distribution comes at a time when the company has been expanding its upstream footprint and consolidating assets across its African portfolio. Management has repeatedly signalled that reinforcing the balance sheet and delivering sustainable value remain key priorities.
With the second tranche now underway, shareholders will be watching closely for the timeline of the remaining phases as the company continues to roll out the programme within the framework approved in 2024.
