Oando is bucking the trend and we love it
History has shown that when a company comes out of a technical suspension, the norm is for shareholders to dump their shares as the value falls. However this has not been the case with Oando. Demand has far outweighed available shares – leaving one to wonder what the true value of Oando shares would be today if trading hadn’t been suspended for 6 months.
You would recall that following the implementation of the technical suspension on Oando’s shares and the SEC’s directive for a forensic audit by the Gwarzo led SEC team, Oando took legal action against the Commission, seeking an injunction on the capital market regulator. However, in December 2017, Oando agreed to cooperate with the SEC in the spirit of transparency and full disclosure and furthermore, dropped all legal suits against the SEC. In January 2018, with the help of the Emir of Kano; Emir Muhammadu Sanusi II, Oando reached a peace accord with one of the aggrieved petitioners and a substantial shareholder, all part of the company’s actions to close out on the saga that began in 2017, in order to refocus its energy on managing the business optimally.
6 months later, it is evident that the efforts taken by Oando are beginning to pay off with the SEC lifting the technical suspension placed on the company, as Oando’s shares have witnessed a commendable 38% increase in four days of trading on the Nigerian Capital market, meaning shareholders home and abroad can finally benefit from the positive operations of the company. Mr. Tambari an Oando shareholder, with the Sokoto Zone Shareholders Association said; “The lifting of the technical suspension is a breath of fresh air. Every true shareholder of Oando is delighted that we can finally reap a return on our investment.
Another positive accolade for Oando is the Engineering, Procurement, Construction (EPC) mandate for the construction of a gas pipeline stretching from Ajaokuta to Abuja as part of the Ajaokuta-Kaduna-Kano Pipeline which has been awarded to the company and a consortium of other Oil companies.
This proves that despite the controversy surrounding Oando/ SEC drama, the company is “forging ahead, in hopes of a swift and smooth conclusion to the forensic resulting in limited impact on the day-to day operations of the business”, as stated by the Chief Compliance Officer & Company Secretary; Ayotola Jagun in a press release on Thursday, 12th April, 2018.