The Tanzanian Capital Markets and Securities Authority has approved the listing that allows Swala to offer to the public up to 9.6 million ordinary shares at 500 Tanzanian shillings per share.
Swala is a Tanzanian oil and gas exploration company that is actively exploring the East African Rift System. It is a subsidiary of, Swala Energy Limited, a public company listed on the Australian Securities Exchange.
The company is listing on the Dar es Salaam Stock Exchange (DSE) looking to raise between 1 million US dollars and 3 million US dollars. The company expects to hold between 58 to 60 per cent of the shares in trust and the remainder held by private investors once the IPO is complete. The proceeds of the offer are expected to be used to fund its oil and gas exploration activities in the country as well as for new business development.
"There has been a great debate on the need for local content in this booming oil and gas industry. We are delighted that today 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 and this IPO opening allows them to do just that," said Abdullah Mwinyi, a director at Swala.
The minimum number of shares on offer is 100 per person, valued at 50,000 Tanzanian shillings, but there is no cap on how much an investor can buy.
Swala is anticipated to list on the DSE in late July 2014 and is the first in the oil and gas industry in Tanzania.