Rand Merchant Bank (RMB) Nigeria Limited has completed its role as lead issuing house on the N236 billion rights issue of Presco Plc. According to details of the transaction, the deal was the largest non-financial services public equity raise in Nigeria in 2025.
The offer was oversubscribed by about 3 per cent, indicating strong participation from existing shareholders and continued appetite of investors for equity capital in the agro-industrial sector. The funds raised are expected to support Presco's expansion plans in its oil palm operations and help address Nigeria's structural supply shortfall in edible oils.
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Presco, which has been operating in Nigeria for more than three decades, is one of the largest integrated palm oil producers in the country. The company has increasingly relied on the equity market to fund capacity expansion and production improvements, as high interest rates make debt financing less attractive for manufacturers and agro-processors.
RMB Nigeria was responsible for structuring and executing the transaction, coordinating regulatory approvals and managing investor engagement. Despite tight regulatory timelines, the rights issue was completed within four months of shareholder approval.
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Speaking on the transaction, Chidi Iwechukwu, RMB Nigeria Executive Director and Head of Investment Banking, said the oversubscription reflects the market’s confidence in Presco’s long-term strategy and growth outlook. He said the transaction also demonstrated the capacity of the Nigerian capital market to absorb large equity issuances outside the banking sector.
Bimbo Oyeiga, Head of Corporate Finance at RMB Nigeria, said the capital increase was important for the agro-allied sector, adding that it should strengthen Presco's market position and support its long-term investment plans. He described the deal as further evidence of investors' willingness to support companies with clear expansion strategies.
Presco's rights issue joins the growing list of big equity raises on the Nigerian bourse in 2025, as corporates increasingly turn to the market to shore up balance sheets and fund growth amid increased borrowing costs.
