Swala Energy Limited has provided an update of the Initial Public Offer (IPO) of is Tanzanian subsidiary Swala Oil & Gas (Tanzania) Plc that is in the process of listing on the Dar es Salaam Stock Exchange in Tanzania.
The IPO which closed on the 4th of July 2014 d has been oversubscribed, with 1,869 old and new shareholders applying for 13.3 million shares.The Company is also participating in the IPO thereby reducing any dilution effect on the parent Company.
Swala Tanzania has now received approval from the Capital Markets & Securities Authority (CMSA) of Tanzania to approve the oversubscription amounts through what is referred to as a “green-shoe” option.
Following Swala Tanzania’s listing the changes to the Company’s direct and indirect equity positions in its Tanzanian assets will be:
Dr. David Mestres Ridge, CEO, said: “The success of the Swala Tanzania IPO supports the Company’s decision to be part of the growing East African capital markets. With a need to budget for the possibility of having to fund all or part of the Swala group’s contribution to the upcoming seismic survey in Pangani and Kilosa-Kilombero the Company’s decision to instead advance the required funds through the IPO has allowed it to retained a reasonable level of equity and participation in these exciting projects.”
The IPO by Swala Oil and Gas was to open the company’s shares to the Tanzanian public selling 9.6 million shares at TZS 500 (approx. $0.31) a share as it seeks to get additional funds to the working capital.
Swala Energy is an operator in two blocks in East Africa Community’s largest country including the Pangani block near the border with Kenya where the company has 32.5 percent interest and a net acreage of 5,576 km2 as well as a 32.5 percent interest in the Kilosa-Kilombero block in Central Tanzania spanning an acreage of 5,745 km2.
Swala plans a 200km seismic acquisition in the Pangani block in July while a 500km seismic acquisition is set for October on the Kilosa-Kilombero block while drilling in both blocks is planne for 2015.