NIGERIA: SEPLAT Targets N535 Offer Price, Lists April 9

Barring any delay in regulatory approvals, the shares of SEPLAT Petroleum Development Company Plc will be listed on the Nigerian Stock Exchange (NSE) on April 9  with a target listing price of N535 per share, THISDAY checks have revealed.
Market sources said last Friday if this target price is achieved, the shares will also  become the highest priced in the oil and gas sector of NSE and the second highest priced in the entire market behind Nestle Nigeria Plc.
SEPLAT, which is an indigenous independent oil and gas company with a strategic focus on Nigeria, had recently announced a  public share offer to raise  about $500 million (N82.5 billion), with  listing on the London Stock (LSE) and NSE.
Information obtained by THISDAY last Friday showed that the marketing of shares (through book building), has begun with price target of between N535 and N700 per share. Book building is the process of generating, capturing and recording investor demand for shares in order achieve an efficient price.
Although the final price would be determined by the level of investors’ response at the end  of the book building, SEPLAT would be the highest priced equity in the sector of the NSE.
At the close of the trading last Friday,   the shares of Total Nigeria Plc  where the  highest priced at N172.95 per share. Mobil Oil followed with N122, while Forte Oil, MRS Oil Nigeria Plc and Conoil Plc closed at N92, N54.44 and N51.90 respectively. However, market operators explained that while the other firms are  into petroleum products marketing, SEPLAT is into exploration of crude oil.
The Chairman, SEPLAT, Dr. Byrant 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.
In July 2010, SEPLAT acquired a 45 per cent participating interest in three offshore producing oil mining leases (OMLs 4, 38 and 41) located in the Niger Delta. The company in June 2013 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.
The company’s average gross gas production in 2013 was 99 million standard cubic feet per day while it is  targeting gross operated oil production from its existing assets of 85 Mbpd by the end of 2016.

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