Presco Plc Launches N237bn Rights Issue to Strengthen Its Market Position
Presco Plc recently held a formal signing ceremony, marking a significant step in its plan to raise N237 billion through a Rights Issue aimed at existing shareholders. This move comes after the company received shareholder approval during its Annual General Meeting on August 19, 2025. The Rights Issue is designed to allow current shareholders to increase their equity holdings, thereby deepening their involvement in Presco’s long-term strategic goals.
The capital raised from this initiative will be allocated to several key areas. It will be used to enhance working capital, supporting operational efficiency and scalability. Additionally, the funds will finance strategic acquisitions, including targeted investments in complementary agribusinesses within the agro-allied sector. The initiative also aims to establish a financial buffer that will support both domestic and international expansion efforts.
Under the terms of the offer, Presco Plc will issue 166,666,667 ordinary shares, each valued at 50 kobo, at an issue price of ₦1,420 per share. The offer will be based on a ratio of one new ordinary share for every six existing ordinary shares held. The qualification date for determining eligible shareholders is set for October 13, 2025.
At the signing ceremony, Mr. Reji George, the Managing Director/Chief Executive Officer of Presco Plc, emphasized the importance of this Rights Issue. He stated, “This Rights Issue marks a pivotal moment in Presco’s journey. It enables us to consolidate our leadership in the agro-industrial sector, fund strategic acquisitions, provide needed working capital, and reinforce our balance sheet to pursue local and international business expansions. We are committed to building long-term value for our shareholders and contributing meaningfully to Nigeria’s food security and industrial growth.”
Key Players in the Rights Issue
The lead issuing house for the Rights Issue is Rand Merchant Bank Nigeria Limited. Several other institutions have joined as joint issuing houses, including Coronation Merchant Bank Limited, Afrinvest Capital Limited, CardinalStone Partners Limited, FBNQuest Merchant Bank Limited, FCMB Capital Markets Limited, Greenwich Merchant Bank Limited, SCM Capital Limited, and Stanbic IBTC Capital Limited. These partnerships underscore the confidence in Presco’s vision and the potential of the agro-industrial sector in Nigeria.
Important Details for Shareholders
The full terms and conditions of the Rights Issue will be detailed in the Rights Circular, which will be distributed directly to shareholders. This document will include a Provisional Allotment Letter and Participation Form, outlining the procedures for subscription. All shareholders and prospective investors are strongly advised to read the Rights Circular thoroughly. In case of any uncertainties, they should seek guidance from their stockbroker, fund/portfolio manager, accountant, banker, solicitor, or any other professional adviser prior to subscribing.
Future Outlook for Presco Plc
Building on this momentum, Presco reaffirms its confidence in Nigeria’s agricultural potential and its commitment to advancing industrial-scale agribusiness that supports national food security, employment, and value addition. The company continues to position itself as a leader in the agro-industrial sector, with a clear focus on sustainable growth and long-term value creation.