Standard Bank has said the listing of Nigerian oil and gas company, Seplat Petroleum Development Company on the Nigerian and London Stock exchanges will go a long way in encouraging the development of the oil and gas industry.
The bank said this in a statement on Tuesday, adding that it acted as the joint global coordinator, joint book runner, while Stanbic IBTC Capital Limited acted as the joint issuing house in Nigeria for the process, which ended in Seplat’s listing.
Seplat Petroleum had listed on the NSE and LSE on Monday, becoming the first player in the upstream sector of the Nigerian oil and gas industry to do so, a development which the NSE said lifted the market capitalisation of listed equities by $1.9bn.
In its statement, Standard Bank, which described the Initial Public Offering that preceded the listing as the largest in sub-Saharan Africa, stressed that the listing had several advantages for the economy.
The Head, ECM, Standard Bank, Mr. Simon Mathews, was quoted as saying, “The IPO was a first of its kind in Nigeria incorporating an international standard bookbuilding and settlement process. The significant investor interest in the IPO generated by our sales teams globally is a testament to the achievements of the Seplat management team and the growing investment opportunities in Nigeria.
“Seplat’s IPO has created a blueprint for future transactions in the region as the African equity capital markets enjoy a period of increasing investor attention, liquidity and capital inflow.”
According to the statement, the IPO proceeds will allow Seplat to further implement its business strategy, which includes acquiring new Nigerian assets and expanding its development programme, and will support the company’s ongoing growth aspirations.
“Seplat intends to pursue an oil and gas acquisition strategy focused on maintaining a balanced portfolio of assets in Nigeria with development opportunities and potential for exploration in order to add value by increasing production and cash flows in the near term,” it added.
It explained that Standard Bank and Stanbic IBTC had worked together with Seplat to align the IPO process in both the London and Nigerian markets, adding that the innovative offer structure ensured that Seplat captured the maximum investor attention both in Nigeria and internationally from a range of investor types.
The Chairman, Seplat Petroleum, Dr. Ambrosie Orjiako, had on Monday, at the official listing of the company, promised investors that, as a global brand, Seplat would continue to uphold sound corporate governance and best practices and uphold all the NSE’s rules and make the country proud.
The company offered each of its shares at N576.
Source: Punch
