Presco Plc has successfully completed its recent rights issue, recording a strong subscription level of 103 per cent, a development that points to growing confidence among shareholders in the company’s strategy and long-term business outlook. The company said the rights issue attracted demand beyond the size of the offer, showing that existing investors were willing to commit more funds to support Presco’s expansion and future growth plans.
According to Presco, the outcome of the rights issue is significant, especially at a time when the Nigerian capital market is experiencing tight liquidity and cautious investor behaviour. In recent months, many investors have become selective due to rising interest rates, inflationary pressures and uncertainties in the broader economy. Against this backdrop, Presco’s ability to record an oversubscription has drawn attention within the investment community.
The company disclosed that it offered 166.667 million ordinary shares to existing shareholders at a price of N1,420 per share. The exercise raised a total of N237 billion, making it one of the notable capital-raising transactions in the Nigerian equities market in recent times. The rights issue opened on November 12, 2025, and closed on December 2, 2025, giving shareholders the opportunity to increase their stake in the company based on their existing shareholding.
Presco explained that the strong level of participation reflects sustained interest in its equity by institutional investors, pension fund administrators and retail shareholders. Market analysts say the response suggests that investors are comfortable with the company’s business fundamentals, corporate governance structure and execution track record. It also shows that shareholders believe the company is well-positioned to navigate economic challenges and continue delivering value over the long term.
The company stated that the funds raised from the rights issue will be used to support both greenfield and brownfield investments. According to Presco, some of these acquisition opportunities are already at advanced contractual stages. It added that part of the capital will also be channelled toward accelerating ongoing industrial expansion projects aimed at increasing production capacity and improving operational efficiency across its value chain.
In a statement to the investing public, Presco noted that the rights issue allowed existing shareholders to deepen their equity participation in the company. The management said this approach reinforces long-term partnerships with investors who share the company’s vision and growth objectives. By choosing a rights issue structure, Presco ensured that current shareholders were given priority in the capital-raising process, rather than diluting ownership through external placements.
Earlier in August, Presco had announced plans to acquire Saro Oil Palm, a subsidiary of Saro Africa International, in a deal valued at about $46.1 million. The proposed acquisition is expected to strengthen Presco’s upstream operations and expand its oil palm plantation footprint. Market watchers believe the successful rights issue has improved the company’s capacity to complete such acquisitions and integrate them effectively into its existing operations.
Participants in the Nigerian capital market described the oversubscription as an endorsement of Presco’s integrated business model and disciplined management approach. Analysts pointed to the company’s focus on vertical integration, from plantation development to refining and marketing, as a key factor driving investor confidence. The ability to control costs, manage supply chains and maintain quality standards across operations has helped Presco remain competitive in the edible oils and fats segment.
Presco also said the capital raise has strengthened its balance sheet, giving the company more financial flexibility to pursue expansion plans while maintaining prudent risk management. A stronger balance sheet, the company noted, will help support future investments, improve resilience against market volatility and enhance its capacity for disciplined strategic execution.
The company added that the outcome of the rights issue further cements its reputation as a credible and well-regarded issuer in the Nigerian capital market. It said the level of participation shows confidence not only in its current performance but also in its long-term growth trajectory, especially within the agribusiness and food production sectors.
Presco Plc is a fully integrated edible oils company with operations spanning oil palm cultivation, production, refining and marketing of specialty fats and oils. Its business is supported by key subsidiaries, including Ghana Oil Palm Development Company Limited (GOPDC) and Siat Nigeria Limited. Through these subsidiaries, Presco has expanded its footprint across West Africa and strengthened its position as a leading player in the regional palm oil industry.
As the company moves forward with its expansion plans, investors and market observers will continue to monitor how effectively the newly raised capital is deployed and how it translates into improved output, earnings growth and long-term shareholder value.
