Energy firm Swala Oil & Gas has become first publicly traded oil and gas company in East Africa following the listing of its shares on the Dar es Salaam Stock Exchange (DSE).
The company’s shares were listed on the Enterprise Growth Market (EGM), an equity market specifically intended for small and medium enterprises and start-ups. With the listing, it becomes the 20th company trading on the DSE and the 2nd on the EGM.
Swala Oil & Gas listed some 99 million shares through an initial public offer (IPO) that raised $3.5 million. The IPO was oversubscribed by nearly 4 million shares, raising about $1 million more than the maximum subscription of $2.5 million.
“Listing on 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,” said Moremi Marwa, DSE CEO.
He added that DSE introduced the EGM segment in 2013 with the main objective of enabling small and sized business access to the capital market.
Swala chairman Ernest Massawe said the listing marks a new chapter for the company and is another step forward in realizing its ambition to achieve a successful venture based on private and public partnership.
“The company is now ready to commence its 2015 seismic programme and we look forward to fruitful results. I am confident that Swala, as a public company, will be able to capitalize on its achievements to date and continue to deliver for all its stakeholders,” he stated.
Swala Tanzania is a subsidiary of Swala Energy Limited, a company listed on the Australian Stock Exchange (ASX) that controls assets in East Africa with a total net land package in excess of 17,500 km2.
Swala Oil and Gas Tanzania Plc