Investors Bank On Seplat’s Bright Prospects

The groundbreaking feat of Nigerian indigenous oil and gas company Seplat at its public offering where it raised $500 million has made investors bank on it to become the leading company in the African oil and gas scene and a Nigerian brand that would enjoy global acclaim.

According to the company whose dual listing on the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE) was encouraged by a team of advisers, including FTI Consulting, the deal which summed up to a $1.9 billion market capitalization for Seplat Petroleum Development Company came as a boost to Nigeria’s local energy industry.

CEO of the NSE, Oscar Onyema said the Nigerian bourse has committed itself to facilitating sustainable creation of wealth by getting the “next group of African champions” on board. “That is, companies with over $1 billion in market capitalization with operations across the continent.”

Onyema also noted that Seplat’s listing is a step into becoming such force.  Since trading of its stocks started on the floor of the NSE on Monday, 14th April, Seplat has enjoyed a 15.7 percent increase on its share, with investors seeing into the future of Seplat they believe is filled with capital gains which the company assures as a major player in Nigeria’s oil and gas industry listed on the exchange.

Seplat’s Initial Public Offering (IPO) made history as the largest since 2008 in sub-Saharan Africa, when Kenya’s Safaricom listed on the Nairobi Securities Exchange.  The company has put in place strategies to ensure sustainable growth using, among other means, commercialization of gas and acquisitions.

“We have the reserve base to grow our business. Our target is to grow our gas production to 400 m scf by 2016 from 130 m scf today and oil production to 84,000 bpd in 2016 from 72,000 bpd today,” said Seplat’s MD/CEO, Austin Avuru, who also added that the company prides itself as having the strongest balance sheet of any indigenous oil and gas company.”

Source: Ventures Africa