Firm raises N236bn rights issue to boost agric-business

Rand Merchant Bank Nigeria Limited RMB Nigeria has completed the N236bn rights issue undertaken by Presco PLC (Presco).  Presco is a leading player in the Nigerian agro-industrial sector, with a proud legacy spanning over three decades while RMB served as the Lead Issuing House on the transaction, working closely with the firm to structure, coordinate, […]

Rand Merchant Bank Nigeria Limited RMB Nigeria has completed the N236bn rights issue undertaken by Presco PLC (Presco). 

Presco is a leading player in the Nigerian agro-industrial sector, with a proud legacy spanning over three decades while RMB served as the Lead Issuing House on the transaction, working closely with the firm to structure, coordinate, and execute a seamless capital raise. 

In a statement, the transaction was undertaken to position the Company for sustained growth and to advance its vision of becoming the most profitable, sustainable, and fully integrated edible oils group in Sub-Saharan Africa.

It added that raised capital also aimed at supporting Presco’s objective of narrowing the supply–demand gap in Nigeria’s oil palm industry. 

It stressed that the transaction received strong support from shareholders, with high participation from existing investors, and achieved a subscription level of 103%, reflecting continued confidence in the Company’s long-term strategy and performance.

“The Company has remained dedicated to delivering value to stakeholders through innovative initiatives that entrench its competitive position, broaden its market presence, and further establish it as a trusted brand to customers across the nation,” the statement reads.

RMB Nigeria provided end-to-end deal management, providing transaction leadership, advising on deal structure, navigating complex regulatory processes under accelerated timelines, and coordinating an extensive investor engagement strategy. 

The transaction was completed within four months from the receipt of shareholders’ approval.

Speaking on the successful completion of the transaction, Chidi Iwuchukwu, Executive Director & Head of Investment Banking at Rand Merchant Bank Nigeria Limited said the transaction underscored the strength of Presco’s brand and reaffirms RMB’s position as a leader in delivering bold, value-enhancing capital market solutions. 

“We are pleased to have led the successful and oversubscribed rights issue for Presco PLC, a clear testament to the market’s confidence in Presco’s growth ambitions and long-term strategy. 

“We extend our sincere appreciation to Presco for entrusting us with this mandate and thank the Securities and Exchange Commission (SEC), Nigerian Exchange Limited (NGX), Central Securities Clearing System (CSCS), co-Advisers, and their leadership teams for their collaboration in achieving this outstanding outcome,” he said.

Bimbo Oyeyiga, Head of Corporate Finance at Rand Merchant Bank Nigeria Limited, added said the achievement highlights the resilience of Nigeria’s capital markets and underscores RMB’s unwavering commitment to delivering value-driven solutions that foster the growth and sustainability of Nigeria’s leading agro-allied companies.

“The successful completion of Presco’s rights issue marks a significant milestone in Nigeria’s agro-allied industrial sector. We are proud to have supported Presco on this landmark transaction, which is expected to strengthen its market position and reinforce investor confidence in its long-term strategy and leadership,” he said.