Swala Oil and Gas Tanzania Limited
Swala Oil and Gas Tanzania Limited has said it has successfully completed it’s Initial Public Offer (IPO) raising at least 6.65bn/- instead of the anticipated 4.8bn/-
At least a total of 13.3 million shares have been issued instead of 9.6 million that were expected.
Each share was selling at 500/- .
With the share sale, the firm has now brought on board 1,869 new and existing shareholders.
With this, the company will now proceed to list on the Enterprise Growth Market (EGM), the Dar es Salaam Stock Exchange’s (DSE) second market.
Information released in Dar es Salaam yesterday by the firm’s Chief Executive Officer (CEO), Dr David Mestres Ridge, said that the IPO was oversubscribed.
He said the shares attracted wananchi and even Tanzania Diaspora.
According to the CEO, Capital Markets and Securities Authority (CMSA) allowed the oversubscription through the application of a green-shoe option.
Ridge added that the success of this first IPO in the oil and gas sector is a testament to the professionalism of the firm’s advisors, the regulators and to the strategic approach taken by the company,” said Ridge.
According to the CEO, Tanzanian investors clearly have the appetite and the ability to participate in wealth creation that accompanies the development of the country’s natural resources. He noted that his company expects that this will grow as more companies seek to involve local investors.
“We are delighted to welcome so many new shareholders to our registry and we look forward to continuing to create value for them and for our existing shareholders,” he affirmed.
Swala is the first oil and gas company to list on an East African stock exchange. It holds assets in the world-class East African Rift System with a total net land package in excess of 17,500km2. Swala has an active operational and business development programme to continue to grow its presence in the hydrocarbon provinces of East Africa.
Swala Energy Limited launched its Initial Public Offer Prospectus (IPO) of 9.6 million ordinary shares on June 9, 2014 in Dar es Salaam in a move aimed at enhancing Tanzanians’ participation in the oil and gas business. The company said it was selling each share at the price of 500/- from June 9 to July 4, this year and expected to raise 4.8bn/-.
The launch came a week after it received an official approval from the Capital Markets and Securities Authority, making it the first of such offering in the oil and gas industry in East African region.
Briefing journalists recently, Mestres had said: “We are delighted that Swala Oil and Gas Tanzania Plc is officially launching its IPO. This is a great step not only for Swala but also for Tanzania and its people.”
He had said that investing in oil and gas shares is a means for economic diversification for any individual and it allows interested parties to own a stake in the fast growing business.