Agro-processing firm Presco Plc has opened a rights issue through which it plans to sell 166.7 million ordinary shares to existing shareholders.
The Edo State-based producer of rubber, crude palm oil and other related products, disclosed in a regulatory filing that the shares will be issued at N1,420 per unit based on one new ordinary share for every six held as of 13 October.
Presco added that the offer, which opened on Wednesday, 12 November, will close on Tuesday, 2 December.
Presco stated that it intends to utilise the cash mobilised from the capital raise programme to finance greenfield and brownfield acquisitions, some of which are at their final contractual stages.
Part of the capital will also help the company speed up its industrial expansion projects aimed at increasing production capacity.
In August, Presco announced plans to acquire Saro Oil Palm, a subsidiary of Saro Africa International, for $46.1 million.
It expects the acquisition to deliver N85 billion in operating profit by 2029.
It acquired a 52 per cent stake in Ghana Oil Development Company for N103 billion or $65 million last year, a deal it said it is hoping to consummate with $124.9 million, enabling it to fully buy out the asset.
According to its audited earnings report, Ghanaian assets contributed N30.5 billion to Presco’s N207.5 billion revenue last year.
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“The rights issue provides existing shareholders with the opportunity to increase their equity holdings in the company, thereby reinforcing their participation and support of Presco’s long-term vision,” the company said in the statement.
Last month, Presco announced a second interim dividend this year at N10 per share after its net profit for the first nine months of the year jumped by 114 per cent to N110.8 billion, compared to the same period of 2024.
