London listed firm Africa Oilfields Logistics (AOL) has announced its plans to list on the Nairobi Securities Exchange (NSE).
The company which is seeking to list by introduction in the Nairobi bourse’s growth enterprise market segment (GEMS) will sell up to 10 per cent of its share capital.
AOL - which provides support services targeting the oil and gas exploration, production and other extractive industries in Kenya through its local subsidiary, Ardan Risk and Support Services - will be the first of its kind to be dual listed as it is already listed in London’s alternative investment market (AIM).
“We have got a commitment to local ownership at both our project as well as company levels and in this listing we will seek to increase the ownership of the company at a Kenyan level,” Carl Esprey, CEO, Africa Oilfield Logistics told CNBC Africa.
The firm has created 350,000 new shares bringing the total to 393 million issued shares. AOL is intending to help boost development and expand its existing support services business in East Africa.
“The mechanics of the listing at the moment are still being discussed. There is a push within Kenya to have the oil industry listed in Kenya and a much larger local ownership of the company but needless to say, the commitment from the NSE and the government is fully committed to the listing in Kenya but the exact mechanics of that would be the topic of discussion in a few weeks,” Esprey said.
According to Esprey, proceeds from the listing will be applied towards its growth initiatives having already gratified its current financing requirements after success in August.
“Our large operational are in Kenya and Ethiopia and we have small operational plans in Djibouti already but we are bidding on work throughout the region. Obviously, the focus for us will be the extractive industry in East Africa. We are spearheaded by Kenya which is large success in the onshore oil discoveries that they have shown and we hope to share that success with local people as they purchase our shares,” Esprey said.