Swala Oil debuts on Dar es Salaam bourse

by Elayne Wangalwa 0

The company listed on the Enterprise Growth Market (EGM) on the Dar es Salaam Stock Exchange (DSE). This makes it the second company to list under the segment and the 20th company to list on the Dar es Salaam bourse.

Swala listed 99 million shares on the EGM, an equity market specifically intended for small and medium enterprises (SMEs) and start-ups, after a successful Initial Public Offer Prospectus (IPO). Swala raised 6.65 billion Tanzanian shillings countering its initital target of 4.8 billion Tanzanian shillings with an oversubscription of 139 per cent.

The company launched its IPO in June 2014. 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.

(READ MORE: East Africa’s first public owned oil and gas company)

According to DSE chief executive officer, Moremi Marwa, listing on the bourse is good for the company as it enables transparency, good corporate practices and proper revelations.  

“Swala has made the right decision to join the family of companies aiming to be open and transparent to their shareholders, the public and world,” he noted.

Ernest Massawe, chairman at Swala said that the company will commence its 2014 seismic programme.

“Today’s listing on the EGM marks a new chapter for our company and another step forward in realizing our ambition to achieve a successful venture based on private and public partnership. We wish to extend our thanks to all those who have made this possible: the regulators, our advisors and, most importantly, our new investors,” Massawe said.

Swala which is actively exploring the East African rift system is a subsidiary of, Swala Energy Limited, a public company listed on the Australian Securities Exchange and has a total net land package of 17,500 km2.

The company’s shares began trading on Monday at 600 Tanzania shillings up from 500 Tanzania shillings offered at the IPO.