Tanzania Securities is fine-tuning the draft prospectus of Swala Oil and Gas Tanzania prior to submitting it to the regulator for approval by the end of this month.
The stockbrokerage agent of the oil and gas firm said the draft prospectus was technically ready although there were small adjustments to take care of before officially seeking the approval of Capital Markets and Securities Authority (CMSA).
Tanzania Securities’ Manager for Research, Operations and Training Joseph Uiso told the ‘Daily News’ in Dar es Salaam that after the regulator goes through the prospectus, the initial public offer (IPO) and listing dates would be set.
“Yes, the IPO is very close but we will know the date once CMSA approves the prospectus,” Mr Uiso, who is also acting CEO, said, adding: “Thereafter we will file an application for IPO to CMSA and Dar es Salaam Stock Exchange.”
Under the IPO and listing rules, the share price will be known to the public once the regulator has approved the prospectus. If the draft prospectus sailed through, Swala Oil and Gas will be the first firm to be listed at the Dar bourse’s second market Enterprise Growth Market (EGM).
The EGM is the alternative equity market that accepts start-up companies or those with no business track record to qualify for the main market, which has more stringent conditions for raising capital. But, since the EGM was launched in December last year, not a single firm has listed.
Last year, Swala offered 1.2 million US dollars via a private placement in Tanzania. The money collected was expected to be used for data on the best drilling locations along its acquired blocks. The private placement was opened last August and closed at the end of September in same year, with investors required to buy at least 80,000 shares at 390/- each.
Swala has high prospects of striking oil in Tanzania, given the fact that its blocks share the same geographical features as Kenya’s block 10BB and Uganda’s Lake Albert region, where Tullow Oil has discovered in excess of 1.2 billion barrels of oil.
The company has been awarded a 50 per cent operated interest in the Pangani Block in Tanzania. The firm has a 50 per cent equity interest in Pangani and Kilosa-Kilombero hydrocarbon exploration licences.
By ABDUEL ELINAZA, Tanzania Daily News
