Swala Oil and Gas Tanzania Limited (SOGTL) is determined to list on the Dar es Salaam Stock Exchange (DSE) by mid next month, becoming the first oil company in the country to list on the tiny bourse.Speaking to reporters in Dar es Salaam, SOGTL Exploration Director Neil Taylor said that the process was already underway and that the firm will soon avail more Tanzanians with an opportunity to invest.
“As I speak, this company is 35 per cent under Tanzanians and we plan to reach the 50 per cent mark very soon. When we achieve that, Swala Oil will become the first oil local company,” said Mr Taylor.
SOGTL Chief Executive Officer David Mestres Ridge told the ‘Daily News’ that the shares would be sold at 500/- each.
He explained that the DSE’s Enterprise Growth Market (EGM) through which his firm will list, targets start up companies, including those on the extractive industry, that intend to raise capital.
EGM is an equity market specifically for start-ups as well as Small and Medium Enterprises. With the liberalisation of the economy, entrepreneurship is expanding rapidly, with the number of SMEs increasing.
However, various studies have unequivocally shown that access to capital remains an impediment to the development of entrepreneurship and growth of SMEs.
The main difference between the main board of the DSE and the EGM is about track record as the company listing through the EGM does not need to demonstrate at least three years of profitable trading, which is a prerequisite for listing on the main board.
“The EGM should not be under-estimated: up to now natural resources companies could not list locally because of the main board’s stringent requirements, which few such companies could fulfill,” said Mr Ridge.
He said cited the London Stock Exchange, saying this year alone, investors in London have injected 177 million US Dollars into newly listed natural resource companies under the AIM Market, the equivalent of DSE’s EGM.
Mr Taylor said his firm has just applied for its third onshore block in addition to the 17,156 kilometre licence in Pangani and the 17,675km licence in Kilosa- Kilombero where SOGTL has a 50 per cent equity interest.
Source: Daily News, reported by Masembe Tambwe from Dar es Salaam, Tanzania
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