Oando Plc's Market Value Plunges to N600 Billion Amid Sell-Off

Oando Plc experienced a sharp decline in its market value following a fresh wave of sell-offs in the energy stock. This downturn has wiped out approximately 51% of its worth from its 52-week high on the Nigerian Exchange equities segment.

The company’s 12.431 billion outstanding shares are now valued at N600.431 billion in the equities market, a significant drop from its peak valuation of N1.223 trillion last year, which was buoyed by the release of a delayed earnings report.

Previously ranked among Nigeria’s top-performing stocks, Oando Plc saw an impressive 508% surge in 2024, despite facing some sell pressure towards the year's end.

Investor sentiment began shifting in 2024, with sell-offs intensifying in the first quarter of 2025 despite Oando's strategic acquisitions and its emergence as the preferred bidder for the Trinidad and Tobago Refinery.

While analysts recognize Oando's strong earnings potential and strategic market positioning, investors appear disconnected from its successes. The recent share price decline reflects market sentiment, expectations, and perceptions regarding the company, despite its ongoing expansion efforts.

On Wednesday, Oando Plc's stock dropped by another 4.6% to N48.3 per share on the Nigerian Exchange, with over 4.8 million units worth approximately N233 million changing hands.

Despite solid fundamentals, Oando’s stock price remains influenced by negative investor perception. The company has experienced heightened share price volatility in 2025 after a robust performance in 2024.

At its current valuation, Oando’s market worth has declined by more than half of its 52-week peak. While the lower share price presents a potential entry point for new investors seeking undervalued stocks, existing shareholders have seen their wealth eroded by about 51%.

In 2024, Oando Plc gained 508.29%, closing at N66 per share as investors responded positively to its aggressive expansion strategy amid global commodity market uncertainties.

Oando recently secured shareholder approval for a share distribution plan at its 45th Annual General Meeting (AGM) held on December 17, 2024.

The company informed the Nigerian Exchange that the first phase of distribution will apply to shareholders listed on its register as of the close of business on February 14, 2025, for tranche 1, and June 30, 2025, for tranche 2.