Oil & Gas market bounces back with Seplat trading debut

2014-04-15 00:00:00.0

The Nigerian oil and gas company, SEPLAT, made its unconditional trading debut yesterday, as the first ever Nigerian company to have its ordinary shares dual listed on both the Nigerian and London Stock Exchanges. Standard Bank, the largest African bank, acted as Joint Global Co-ordinator, Joint Book runner, Stanbic IBTC Capital Limited acted as Joint Issuing House and Stanbic IBTC Stockbrokers Limited as Joint Stockbroker in Nigeria.

The transaction is the largest in Sub-Saharan African (ex South Africa) since 2008. SEPLAT is the first Nigerian company to have its ordinary shares dual listed on both the Nigeria and London Stock Exchanges.

The IPO proceeds will allow SEPLAT to further implement its business strategy, which includes acquiring new Nigerian assets and expanding its development programme, and will support the company’s ongoing growth aspirations. SEPLAT intends to pursue an Oil & Gas acquisition strategy focused on maintaining a balanced portfolio of assets in Nigeria with development opportunities and potential for exploration in order to add value by increasing production and cash flows in the near term.

Standard Bank and Stanbic IBTC have been working together with SEPLAT, aligning the IPO process in both the London and Nigerian markets.  The innovative offer structure ensured SEPLAT captured the maximum investor attention both in Nigeria and Internationally from a range of investor types.  Standard Bank and Stanbic IBTC hosted SEPLAT in over 130 investor meetings during roadshows in Nigeria, UK, Europe, U.S., South Africa and Asia.  Over 300 investors participated in the IPO generating significant over subscription which led to the Shares trading up upon listing.  The order book consisted of high quality Pension, Asset Management, Insurance Funds and High Net Worth Individuals in Nigeria and blue chip institutional investors globally.  Approx. half of the investors originated in Nigeria, again showing the increasing depth of African capital markets.

Yewande Sadiku, Chief Executive Stanbic IBTC Capital, said: “Seplat is the first Nigerian company to have Shares admitted to the Main Board of the London Stock Exchange.  Standard Bank teams worked tirelessly to align the Nigerian and London IPO processes to ensure the Company could capture the growing interest for Nigerian and African equities. The IPO was a first of its kind in Nigeria incorporating an international standard bookbuilding and settlement process. The significant investor interest in the IPO generated by our sales teams globally is a testament to the achievements of the Seplat management team and the growing investment opportunities in Nigeria.  Seplat’s IPO has created a blueprint for future transactions in the region as the African equity capital markets enjoy a period of increasing investor attention, liquidity and capital inflow.”



About Standard Bank Group

Standard Bank Group is the largest African bank by assets and earnings. Our strategy is to build the leading African-focused financial services organisation using all our competitive advantages to the full. We will focus on delivering superior sustainable shareholder value by serving the needs of our customers through first-class, on-the-ground operations in chosen countries in Africa. We will also connect other selected emerging markets to Africa and to each other, applying our sector expertise, particularly in natural resources, globally. We operate in 20 countries on the African continent, including South Africa.

Standard Bank has a 151-year history in South Africa and started building a franchise outside southern Africa in the early 1990s. In recent years, Standard Bank has concluded key acquisitions on the African continent in Kenya and Nigeria. Africa is at our core and we will continue to build first-class on-the-ground banks.

The group’s nearly 49 000 employees in all regions deliver a complete range of services across personal and business banking, corporate and investment banking and wealth management.  Standard Bank's Corporate & Investment Banking division offers its clients banking, trading, investment, risk management and advisory services to connect selected emerging markets to Africa and to each other. It has strong offerings in mining and metals; oil, gas and renewables; power and infrastructure; agribusiness; telecommunications and media; and financial institutions.

Normalised headline earnings for 2013 were R17.2 billion (about USD 1.8 billion) and total assets were R1 694 billion (about USD 162 billion). Standard Bank’s market capitalisation at 31 December 2013 was R209.4 billion (about USD20 billion).

The group’s largest shareholder is Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20,1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade and deal flow between Africa, China and select emerging markets.

For further information go to www.standardbank.com


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