Shares of Oando have dipped by 21 per cent in the last three days since news broke that jailed former Governor of Delta State, James Ibori, hid his assets in the integrated energy firm. Ibori has allegedly told a Swiss bank in 2004 that he owned about 30 per cent of the company.
However, Oando debunked the claims, saying Ibori only owned an insignificant proportion of the firm.
“Based on our current shareholding register, Ibori’s shareholding stands at 443 shares out of a total issued and paid up share capital of 6.8 billion ordinary shares, which is clearly insignificant, and cannot be considered as ‘a large part of Oando,” the company had said
The shares of the company have been affected by investor apathy which has depressed its price from N11.77 to N9.32 between Monday and Wednesday.
However, some market operators said instead of dumping Oando shares, investors should see the current price as an unprecedented entry opportunity.
“While the claims and counter claims are going on, which I believe will be resolved at the end of the day, the decline in the shares of Oando is offering a very uncommon buy opportunity investors should take advantage of,” Mike Ezeh of Crane Securities Limited said.
Oando had opened the year at N12.35 per share, peaked at N19.80 in March and was hovering between N13 and N15 before the latest negative trend.
Before now, analysts at Dunn Loren Merrifield Limited, an investment banking firm, had said Oando’s stock was trading at a discount.
“Oando’s multiples are quite attractive and the stock trades at a deep discount to local and select global peers. Relative to local peers, its price earnings ratio of 2.74 trails industry average of 14.13 and is substantially below those of Total Nigeria, Forte Oil and Mobil Nigeria which are 10.39, 16.37 and 13.32 respectively,” the analysts said.
Information from This Day was used in this report.