Oando Plc has seen a steep decline in its market valuation, plummeting by approximately 51% from its peak on the Nigerian Exchange, following increased sell-off activity.
The company’s total market capitalization now stands at N600.431 billion, significantly lower than its previous valuation of N1.223 trillion in 2024 when the company released its delayed earnings report.
Despite a remarkable 508% gain in 2024, investor sentiment has shifted, leading to increased sell pressures in the first quarter of 2025. The downturn persists even as Oando continues to expand its market presence and successfully secures strategic acquisitions, including its role as the preferred bidder for the Trinidad and Tobago Refinery.
On Wednesday, Oando Plc’s stock dropped by 4.6% to N48.3 per share as over 4.8 million units worth approximately N233 million changed hands in the Nigerian equities market.
Despite its strong financial fundamentals, Oando’s stock price movement reflects lingering investor concerns. While its decline presents a potential buying opportunity for new investors, existing shareholders have suffered significant wealth erosion.
In 2024, the company secured shareholder approval for stock distributions during its 45th Annual General Meeting. The first tranche of share distributions is scheduled for February 14, 2025, with the second tranche expected by June 30, 2025.
Source: DMarketForces.com
