29 March 2014, News Wires – Nigerian independent Seplat Petroleum has revealed the price range for its intended flotation on bourses in London and Lagos.
The company, which revealed its dual listing plans earlier this month, is looking for around $500 million from the initial public offering (IPO).
Shares in London will go on sale from 9 April, under the ticker SEPL, at between £1.95 ($3.24) and £2.55 a piece, the company expects. In Lagos Seplat is aiming for between 535 ($3.24) Nigerian naira and 700 naira.
The number of shares being sold will be between 118 million and 154 million, depending on interest. This is before any over-alotments, which are set to make up 15% of the total sold, if the offer of over-alotments is taken up.
The company will use proceeds to pay down debt and also chase new onshore and shallow-waterf offshore assets, either through acquisitions or farm-ins. Some $48 million will be used to pay off a shareholder loan.
Seplat’s development plan being sold to prospective shareholders is to bring at least one new field into production each year.
“The company expects that regulatory developments encouraging the transfer of oil and gas assets from international oil companies to Nigerian companies, and the shifting focus of international oil companies to offshore assets, will continue to give rise to further acquisition opportunities in the Niger Delta,” It said in its intention to float notice earlier this month.
“The company believes it is well positioned to acquire additional blocks from international oil companies, local companies divesting their interests in the Niger Delta region, or through government tenders.”
Seplat has a 45% interest in and is operator of three oil blocks: OML 4, 38 and 41. Production is mostly from five fields: Sapele, Oben, Okporhuru, Ovhor and Amukpe.