• Friday, July 19, 2024
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SEPLAT’s IPO price set at N576 per share


SEPLAT Petroleum Development Company Plc has announced the pricing of its initial public offering (the “Global Offer”).

The Offer Price has been set at NGN 576 per Ordinary Share for shares to be listed on the Official Trading List of the NSE (the “Offer Price”) and 210 pence per Ordinary Share for shares to be traded on the LSE’s main market.

Based on the Offer Price, the total market capitalisation of SEPLAT at the commencement of conditional dealings will be approximately £1.14 billion (equivalent to US$1.90 billion) (excluding the exercise of the over-allotment option)

The Global Offer comprises a base offering (the “Base Offer”) of 143,284,130 new shares issued by the Company, representing 26.4 per cent of the Company’s enlarged issued share capital (excluding the exercise of the over-allotment option)

The Base Offer will raise gross proceeds of approximately £300.9 million (equivalent to US$500 million) while the Over-allotment Option shall consist of 10,336,183 new shares representing 15 percent of the final amount allocated to investors outside of Nigeria (the “International Offering”) in the Base Offer. The Over-allotment Option can be exercised for a period of 30 calendar days from today

As the company stated in its intention to float announcement, the net proceeds of the Global Offer will primarily be used to acquire and develop new acquisitions, and/or pay down any additional debt raised in connection therewith, of both onshore and shallow offshore acreages, assets and joint venture farm-ins.

Approximately $48 million shall be used to pay down in full a shareholder loan from MPI S.A. SEPLAT’s shares began trading Wednesday (April 9) on the LSE in conditional dealings in the Ordinary Shares on the LSE today at 8 am (London time) under the ticker symbol “SEPL”

Reacting to the Development, Dr. ABC Orjiako, Chairman of SEPLAT said “We are delighted with the support shown and happy to welcome a range of blue chip investors to our share register. Despite a challenging market for oil and gas stocks, the response has been excellent and demonstrates strong demand in both London and at home for leading Nigerian indigenous E&P player” while the CEO, Austin Avuru added that “We are already a leading indigenous independent in our home market but the opportunities opening up in Nigeria for companies like ours are significant.”

The Admission of the Ordinary Shares to the Official Trading List of the NSE, under the ticker symbol “SEPLAT” and to the Official List of the FCA as well as to trading on the main market for listed securities of the LSE under the ticker symbol “SEPL” and the commencement of unconditional dealings are expected to take place on or around Monday

SEPLAT 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. Maurel & Prom, a French independent oil company, subsequently acquired a 45 per cent equity interest in SEPLAT; this interest was later spun-off to form Maurel & Prom Nigeria S.A(now Maurel & Prom International).

In July 2010, SEPLAT acquired a 45 per cent participating interest in, and was appointed operator of, a portfolio of three onshore producing oil mining leases (OMLs 4, 38 and 41) located in the Niger Delta.

In June 2013, the Company entered into an agreement for the acquisition of a 40 per cent participating interest in the Umuseti/Igbuku marginal field area located within OPL 283 in the Niger Delta. SEPLAT is one of the leading indigenous oil and gas operators in Nigeria with average gross operated oil production of 51,400 barrels per day (“bpd”) as at 31 December 2013 having grown from 13,900bpd in August 2010.

The Company’s average gross gas production in 2013 was 99 million standard cubic feet per day (“MMscfd”). SEPLAT is targeting gross operated oil production from its existing assets of 85 Mbpd by the end of 2016.