Swala Oil & Gas is now listed on the Dar es Salaam Stock Exchange (DSE) becoming the first public-owned oil and gas company in East Africa
The Tanzania-based company is the 20th to list on the DSE and the second to list under the enterprise growth market (EGM), an equity market specifically intended for small and medium enterprises (SMEs) and start-ups.
Swala Oil & Gas listed on the EGM with 99mn shares after initial public offer (IPO) which raised US$40,048,96bn. This IPO was oversubscribed by nearly four million shares and has raised nearly US$ 1,204,480 more than the maximum subscription of US$28,90,752.
Alhaji Ali Hassan Mwinyi, ex-president of Tanzania, said that Swala Oil & Gas’ oversubscription shows a great investment appetite amongst Tanzanians in investing in their country’s economy and a growing confidence in the national Stock Exchange.
Moremi Marwa, CEO of the DSE, added, “In October of 2013, the DSE introduced the EGM segment at the exchange whose main objective is to enable small and medium sized business access to the capital market. Swala Oil & Gas is the second company to list on EGM within a year of its launching. Listing on DSE comes with transparency, good corporate practices and proper disclosures.”
According to Ernest Massawe, chairman of Swala Oil & Gas, the listing on the EGM marked a new chapter for the company and another step forward in realising the ambition to achieve a successful venture based on private and public partnership.
“We wish to extend our thanks to all those who have made this possible: the regulators, our advisors and, most importantly, our new investors. The company is now ready to commence its 2014 seismic programme and we look forward to fruitful results. I am confident that Swala Oil & Gas, as a public company, will be able to capitalise on its achievements to date and continue to deliver for all its stakeholders,” he added.
