Nigeria’s leading fully integrated edible Oils and Fats company, Presco Plc, on Wednesday notified investors through the Nigerian Exchange that its recent Rights Issue recorded a 103% subscription level.
Recall that Presco Plc sought to raise a total of N236.666 billion into the business through the offer of 166,666,667 ordinary shares at N1,420 per share on the basis of one new share for every six held as of October 31, 2025.
The Rights Issue, which attracted demand in excess of the offer size, the company said, underscored the sustained investor appetite for Presco’s equity and a clear willingness by shareholders to increase their investment in the
business, just as it reflected an overwhelming confidence in its strategic direction and long-term growth outlook.
The oversubscription, according to the notification signed by Frederick Ichekwai, the Company Secretary, “is particularly noteworthy in a cautious capital-market environment characterised by tightening liquidity and selective investor participation.
“Against this backdrop, Presco Plc’s ability to exceed its offer size highlights the depth of confidence it continues to command among institutional investors, pension fund administrators, and retail shareholders.
“Endorsement of strategy, execution, and governance Market participants view the strong response as a clear endorsement of Presco Plc’s business fundamentals, disciplined execution, and strengthened governance. The outcome reinforces confidence in the Company’s operational resilience, integrated business model, and ability to continuously deliver on its commitment to sustainable long-term value,“ Ichekwai noted.
Beyond signalling investor confidence, he said the successful Rights Issue strengthens Presco Plc’s financial position, providing greater balance-sheet capacity to support business expansion and disciplined strategic execution.
According to the rights circular made available through the company’s website, Presco Plc, which is majority owned by SIAT Limited, a Belgian firm, plans to utilise ₦170.17 billion or 72.48 percent of the ₦234.77 billion net proceed of the offer for what the directors tagged “settlement of consideration for acquisition” over a six-month period. Within the same period, another ₦41.45 billion or 17.66 percent of the net proceeds is earmarked for working capital obligations, while its ongoing local and international business expansion will gulp the balance ₦23.15 billion or 9.86 per cent.
For Ichekwai also, on the whole, “the oversubscribed Rights Issue further consolidates Presco Plc’s standing as a credible and well-regarded issuer within the Nigerian capital market. The strong participation underscores confidence not only in the Company’s current performance, but also in its long-term vision and growth trajectory.
