Seplat Petroleum Development Co., a Nigerian oil company that bought assets in the Niger delta from Royal Dutch Shell Plc, plans to sell shares to the public to raise at least $500 million.
The company will use the proceeds to acquire more assets or enter JVs, it said in an emailed statement. It plans a dual listing of ordinary shares on the London Stock Exchange and the local bourse, making it the first Nigerian company to do so, it said.
“The global offer proceeds will allow us to further implement our business strategy, which includes acquiring new assets,” Bryant Orjiako, Seplat’s chairman, said in the statement. “Seplat has a disciplined approach to acquiring new onshore and shallow-water assets in the Niger delta, which will be strictly adhered to.”
Seplat bought a 45% interest in 2010 from three oil leases from Shell and was appointed the operator by the Nigerian oil industry authority. Seplat’s average crude output tripled after the acquisition, to more than 50,000 bbl/d in 2013 along with 99 MMscfd.
“Our target is to grow gross operated production of oil and condensate to 85,000 bbl/d by the end of 2016, with at least 100% annual reserves replacement from our existing assets,” Orjiako said.
Seplat has appointed BNP Paribas SA and Standard Bank Group Ltd. as joint co-ordinators and bookrunners, it said. Renaissance Securities Cyprus Ltd., Citigroup Inc. and RBC Europe Ltd. will act as joint bookrunners while Stanbic IBTC Plc and Renaissance Securities Nigeria Ltd. were appointed as Nigerian joint issuing houses.
Seplat’s full-year revenue rose 41% to $880 million, it said in the statement. Operating profit rose 45% to $479 million during the same period.
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