Tanzanian firm becomes first publicly owned oil & gas group in East Africa

Tanzania-based energy group Swala Oil & Gas has listed on the Dar es Salaam Stock Exchange (DSE), becoming the first publicly owned oil and gas company in East Africa.

The company is the twentieth to list on the DSE and the second to list under the Enterprise Growth Market (EGM), an equity market specifically intended for small and medium-sized enterprises (SMEs) and start-ups.

The company listed on the EGM with 99-million shares after a successful initial public offering (IPO), which raised TZS6.65-billion.

The IPO was oversubscribed by nearly four-million shares and raised nearly TSZ2-billion more than the maximum subscription of TZS4.8-billion.

Former Tanzanian President Ali Hassan Mwinyi, who officiated the listing event, said Swala’s oversubscription indicated an investment appetite among Tanzanians and a growing confidence in the national bourse.

DSE CEO Moremi Marwa added that the EGM was aimed at providing SMEs access to the capital market.

“Listing on the DSE comes with transparency, good corporate practices and proper disclosures. Swala has made the right decision to join the family of companies aiming at being open and transparent to their shareholders, the public and the world at large,” he commented.

Swala chairperson Ernest Massawe noted that the listing was a step closer to the company realising its ambition of achieving a successful venture based on a public-private partnership.

“We are now ready to start our 2014 seismic programme and we look forward to fruitful results. I am confident that Swala, as a public company, will be able to capitalise on its achievements to date and continue to deliver for all its stakeholders,” he maintained.

By Natalie Greve