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Deepwater Independent oil and gas company, SEPLAT Petroleum Development Company, yesterday, Wednesday, Match 9, 2014, said it raised 300.9 million pounds (about 300.9 million naira) in its initial public offering, at a dual listing in the London and Nigeria’s Stock Exchanges. The company priced its offering at 210 pence a share on the London Stock Exchange and N576 a share on the Nigerian Stock Exchange in Lagos, giving it a market capitalization of £1.14 billion, The New York Times reported. Shares were down about 2.4 per cent to 205 pence in conditional trading in London yesterday morning, while unconditional trading of the company’s shares in London and trading in Nigeria is expected to begin on Monday. Seplat is the first Nigerian company to have a dual listing in London and in Nigeria, having listed 26.4 per cent of its share capital as part of the offering. The New York Times quoted the Chief Executive Officer of the company, Mr. Austin Avuru, as saying that the money from the offering would put the company in a strong position to make further acquisitions as international oil companies divest their onshore assets in the Niger Delta. Part of the proceeds, according to Avuru, will also be used to reduce the company’s debt. “We are already a leading indigenous independent in our home market but the opportunities opening up in Nigeria for companies like ours are significant,” Avuru said in a statement. SEPLAT was formed by two Nigerian Exploration and Production (E & P) companies – Shebah E & P and Platform Petroleum Limited for the acquisition of 45 per cent stake in Oil Mining Leases (OMLs) 4, 38 and 41. BNP Paribas, Standard Bank, Renaissance Securities, Citigroup and the Royal Bank of Scotland served as joint bookrunners on the flotation. The company recently unveiled plans to proceed with an initial public offer of its ordinary shares to raise $500 million. Additionally, it planned to apply for admission of its ordinary shares to the standard listing segment of the official list of the Financial Conduct Authority (FCA) and to trading on the London Stock Exchange’s (LSE) main market as well as the official trading list of the Nigerian Stock Exchange (NSE). Upon listing, SEPLAT will be the first Nigerian company to have its ordinary shares dual listed on both the LSE and the NSE, according to a statement issued by the company yesterday, Wednesday, March 9, 2014.

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This article was first published on 10th April 2014

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