In a move aimed at enhancing Tanzanians’ participation in the oil and gas business, Swala Energy Limited yesterday launched its Initial Public Offer Prospectus (IPO) of 9.6 million ordinary shares in Dar es Salaam.
The company will be selling each share at the price of 500/- from yesterday to July 4, this year and expects to raise 4.8bn/-.
The launch comes a week after the company received its official approval from the Tanzania Capital Markets and Securities Authority (CMSA), making it the first of such offering in the oil and gas industry in East African region.
Briefing journalists yesterday in Dar es Salaam, Swala’s Chief Executive Officer, David Mestres said: “We are delighted that Swala Oil and Gas Tanzania Plc is officially launching its IPO. This is a great step not only for Swala but also for Tanzania and its people.”
He said that investing in oil and gas shares is a means for economic diversification for any individual and it allows interested parties to own a stake in the fast growing business.
Mestres further stated that they are extremely grateful to the government, Tanzania Petroleum Development Corporation (TPDC) and CMSA for allowing them to become East Africa’s first public owned oil and gas company, adding: “On behalf of all Swala directors, I officially invite members of the public to invest in the firm.”
For his part, Director at Swala Oil and Gas Tanzania Plc, Abdullah Mwinyi said there has been a lot of debate on the imperative need for local content in the booming oil and gas industry.
“We are delighted that Swala would become the first oil and gas company to walk the talk. We strongly believe that Tanzanians should be given an opportunity to participate in the oil and gas business,” he said, adding that the IPO opening allows them to do just that.
Mwinyi further noted that there are significant signs that they are about to find oil in the next few years.
Tanzanians own 35 percent of shares in the company while the parent owner from Australia has 65 percent, he clarified.
According to Mwinyi, Tanzanians are expected to be given the first priority in the selling of shares. Her emphasised that clear steps will be followed to ensure that applicants from Tanzania are first shortlisted.
“At least 9.3 percent of the shares are kept aside for local residents where the exploration is taking place so as to benefit them,” he pointed.
Swala is doing all it can to make sure that Tanzanians become part of the company by owning the majority shares, he said.
When asked how the oil drilling will affect the local community living in the Pangani and Kilosa-Kilombero areas, Mwinyi said that there is a lot of assessment yet to be done.
“We must show mitigating circumstances. There are various issues that can come up, for example with water, health and the environment,” he noted.
Mwinyi pointed out communicable diseases was one of the problems that will need addressing when the drilling work begins. Since the drilling will be done in communities that might not have been exposed to outsiders, the spread of diseases must be taken into consideration.
“We have social workers to help integrate the community, and our workers will be educated in the matter,” Mwinyi said.
According to him, so far there have been no complaints from the local people of Pangani and Kilosa-Kilombero but he expects that there will be issues at a later stage.
No comments:
Post a Comment