Seplat gets NSE’s approval to list at N576 per share

Seplat214 April 2014, Lagos – The Council of the Nigerian Stock Exchange, NSE, has approved a listing price of N576 per share for Seplat Petroleum Development Company Plc, thus making it the highest priced equity in the oil and gas sector. Also, Seplat will become the second highest priced equity on the exchange,  behind Nestle Nigeria Plc, which closed at N1,185 per share last Friday.
The shares of the  indigenous independent oil and gas company  are being listed on the NSE and London Stock Exchange (NSE) following  a successful initial public offering (IPO) to raise about $500 million from the both the Nigerian and international capital markets.

Seplat had made the offer between a price range of N535 and  N700 per share. THISDAY checked showed that the offer was concluded at N576, a price the  Council of the NSE also  approved last Friday for the shares to be listed.

It was gathered that a total of 143,284,130 shares were sold, fetching the company about N82 billion.  However, the entire 543, 284,130  shares of the company would be listed on the NSE. At listing,  Seplat will be addN313 billion to the capitalisation of the exchange, which closed at N12.557 trillion last Friday.

Besides, the Seplat will now lead the oil and gas sector of the exchange in terms of market capitalisation, pushing Forte Oil Plc to the second position.

Before now, Forte Oil has been the leader with N146 billion as at last Friday. Oando Plc followed with a capitalisation of N142 billion.

But with a capitalisation of N313 billion, Seplat will be number one in that sector followed by Forte and Oando in that order.

The Chief Executive Officer of Seplat, Mr. Austin Avuru, was last week quoted as saying the money from the IPO would put the company in a strong position to make further acquisitions as international oil companies divest their onshore assets in the Niger Delta.

According to him,  part of the proceeds  will also be used to reduce the company’s debt.

“We are already a leading indigenous independent in our home market but the opportunities opening up in Nigeria for companies like ours are significant,” Avuru said.

The offer was about to open the  Chairman of the company,  Dr Ambrosie Bryant Orjiako, had explained that the proceeds from the offer  would  allow the company to implement its business strategy, which included the acquisition of some new assets and repayment of debts.

“We are confident that SEPLAT  will continue to succeed and flourish as a leading Nigerian oil and gas operating company with a proven track record for delivering value to its investors, while fostering indigenous participation in the Nigerian oil and gas industry.

“We are committed to maintaining our track record and achieving our growth aspirations through sound corporate governance and best practice,”Orjiako said.
Tthe company was founded in 2009 by Shebah Petroleum Development Company Limited and Platform Petroleum (Joint Ventures) Limited for the purpose of investing in Nigerian oil and gas opportunities,” he had said.


– Goddy Egene, This Day

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