Seplat launches US$500 million London-Lagos IPO

Seplat oilandgas AfricaSeplat has raised US$500mn in the biggest IPO for a sub-Saharan company since Safaricom's in 2008. (Image source: Seplat)Lagos-based Seplat has generated US$500mn in an Initial Public Offering (IPO) in London and Lagos, reporting the Nigerian oil and gas company to be worth US$1.9bn

According to Seplat, the US$500mn raised will provide a huge boost to Nigeria's homegrown energy industry.

The company, who made 26.4 per cent of its shares available at a price of 210p, towards the bottom of its target range of 195-255p, stated that it will use the funds to further grow and pay down net debut, which totalled US$141mn towards the end of 2013.

“Despite a challenging market for oil and gas stocks, the response has been excellent and demonstrates strong demand in both London and at home for leading Nigerian indigenous . . . players,” said ABC Orjiako, chairman of Seplat.

The Initial Public Offering (IPO) is the largest for a sub-Saharan company since Kenya-based mobile operator Safaricom’s in 2008, data-firm Dealogic revealed.

The flotation is also the second biggest for a Nigerian company, following the US$550mn of Starcomms six years ago.

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