Oando, a prominent and leading oil and gas company, has reached a market capitalization of N1 trillion, placing it among an exclusive group of companies.
This milestone follows a significant increase in its share price, which rose by 207.6% in August.
In early August, Oando announced its intention to complete a $783 million acquisition of Nigeria Agip Oil Company, a subsidiary of Eni.
This announcement contributed to increased investor interest, driving up the company’s stock price and resulting in a trading volume of 547 million shares.
With this development, Oando has joined the “Stocks Worth Over One Trillion” (SWOOTS) club, alongside other major companies such as Zenith Bank, SEPLAT, BUA Cement, and Dangote Cement.
Oando was the best-performing stock in August 2024, with its share price skyrocketing by 207.6% month-to-date in August.
The stock has climbed over 700% year-to-date, as of the market opening on September 3, 2024.
The stock is currently experiencing a strong bullish price action, buoyed by the positive sentiment surrounding the company’s performance and strategic moves.
Positive sentiment was further bolstered by the announcement of the Agip Oil acquisition.
This strategic move by Oando, according to experts, is not only solidifies its position as a leading indigenous energy player but also sends a strong message to the global energy community. It demonstrates the capability and ambition of Nigerian companies to compete on an international stage, challenging the traditional dominance of IOCs and paving the way for a more diversified and sustainable energy landscape.
Beyond the immediate impact on Oando’s operations, this acquisition is expected to have far-reaching implications for the Nigerian economy. The empowerment of indigenous energy companies like Oando aligns seamlessly with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which emphasizes the importance of fostering local content development and promoting the participation of Nigerian businesses in the energy sector.
