East Africa’s only public owned oil and gas company, Swala Oil and Gas, based in Tanzania has announced the launch of its Initial Public Offer Prospectus (“IPO”) of 9,600,000 ordinary shares.
According to the company’s press release, the company will be selling each share at the price of Tanzanian Shillings 500 from June 9 to July 4, 2014. This announcement comes a week after the company received its official approval from the Tanzanian Capital Markets and Securities Authority (CMSA), making it the first of such offering in the Oil and Gas industry in East Africa.
Swala’s CEO David Mestres Ridge said, “We are delighted that today 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. 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 a fast growing business.”
Mr Ridge further stated, “we are extremely grateful to the Government of Tanzania, TPDC and the CMSA for allowing us to become East Africa’s first public owned Oil and Gas Company. On behalf of all Swala directors I would like to officially invite the public to invest in Swala Oil and Gas Plc.”
Abdullah Mwinyi, a Director at Swala Oil and Gas Tanzania Plc added, “there has been a great debate on the need for local content in this booming oil and gas industry; we are delighted that today Swala would become the first oil and gas company to walk the talk. We strongly believe that Tanzanians should be given an opportunity to participate in the oil and gas business; this IPO opening allows them to do just that.”
Application forms and copies of the prospectus will be available online at Nihisa.com, at the offices of all Licensed Dealing Members (LDM) of the Dar Es Salaam Stock Exchange (DSE), branches of CRDB Bank Plc and offices of Arch Financial & Investment Advisory Ltd. The offer is open from June 9 to July 4, 2014. There is currently no maximum subscription limit, but a minimum subscription of 100 shares per person is required.