Posted by By Mike Oduniyi on
Major oil products marketer, Oando Plc, has concluded plans to list on South Africa's Johannesburg Stock Exchange (JSE).
* Seeks fund for proposed refinery
Major oil products marketer, Oando Plc, has concluded plans to list on South Africa's Johannesburg Stock Exchange (JSE).
The move is also aimed at accessing funds for its proposed oil refinery.
THISDAY gathered yesterday that the listing, to be done in the third quarter of the year, is to create window of opportunity to introduce the oil marketing firm to South African investors.
Oando is said to be planning to flag-off studies on the refinery next quarter, and that the plant, along with other energy related projects, including an Independent Power Project (IPP) the company is venturing into, require funding that may not be easily raised in the local capital market.
Managing Director of the company, Mr Wale Tinubu, who confirmed the story said the company could raise its total market capitalisation to some $800 million in addition to its NSE shares, after the JSE rights offer.
Tinubu said the company is interested in South Africa's technology for converting gas to liquid fuel, presenting a good opportunity for South African and Nigerian companies to work together.
"Nigerian companies have access to resources such as oil and gas, while many South African companies are strong in engineering. With 90 per cent of the natural gas being flared instead of used, there is a good opportunity for South African companies to get into the Nigerian market," he said.
Tinubu said Oando is talking to several prospective investors and plan to select a financial institution to arrange its listing on the JSE.
It is also a quoted company on the Nigerian Stock Exchange (NSE). Although the NSE has a Memorandum of Understanding with the JSE, it is however, not clear as at press time if the company has met the requirement of the NSE and the Securities and Exchange Commission (SEC), for such cross-border listing.
Oando created ripples in both oil products marketing industry and local capital sector when it bought, through its core investors, Ocean and Oil 60 percent shares worth $74 million divested by Italian investors in the former Agip Nigeria Limited, in 2001.
The acquisition threw Oando up as the second largest oil marketing company in Nigeria, with total market capitalisation of N48.655 billion, behind French firm, Total Nigeria Plc, which has a market capitalisation of N57.14 billion.