The Ophir Energy, the oil and gas exploration company, has raised 553 million sterling pounds (over 1.3trn/-) in a placing and rights issue for exploration in the country.
This is a major breakthrough for the company as it intends to use the capital in further exploration work mainly on gas-rich blocks off the coast of Tanzania and elsewhere in their other operations.
The UK based exploration firm has operations in several African countries including Ghana, Equatorial Guinea, Gabon, Kenya and Tanzania.
Ophir, alongside its partner BG Group in discovering large gas reserves off Tanzania, plans to start with the raised 91 million pounds by placing just under 20 million shares at 460 pence each.
However, the bulk of the fundraising came from a rights issue of two new shares for five existing shares in a move that effectively tapped existing shareholders for the remaining £462m targeted by the fundraising which also helped overcome a perceived funding gap.
This means new shares created through the placing and rights issue currently now represents 32 per cent of the enlarged share capital. JPMorgan Cazenove was the sole sponsor and joint book runner of the fundraising.
Ophir was quoted in the papers as saying the rights issue would remove the overhang of an anticipated need to raise funds to progress its projects that had weighed on the stock.
The company floated in London in 2011 when it raised $375m at 250p a share. Before flotation, Mittal Investments held 21 per cent and Och-Ziff 16 per cent in Ophir.
Source Tanzania Daily News
