CAMAC going public: oil company's subsidiary to trade on Nigerian Stock Exchange.
Allied is an oil exploration and production company based in West Africa that focuses primarily on deepwater, offshore, and shallow water exploration in West African countries.
Following the initial public offering, Kase L. Lawal, CEO of CAMAC, expects the company to maintain an approximate 65% to 70% interest in its subsidiary. Lawal expects the Allied IPO to generate more than $500 million and the company to have a market capitalization of $1.5 billion to $2 billion with 1.8 billion shares trading. The offering, hilly underwritten by Nigerian investment banks, is expected to initially trade at about 40 cents per share. Pending approval, shares are expected to trade in the early fourth quarter.
"The motivation is to grow our business in West Africa and to increase production," Lawal says. "But even more importantly for us is to be able to share the opportunities and the wealth that we've been able to achieve through our investment in West Africa with the people of West Africa and Nigeria especially." The stock exchange in Nigeria has been buoyant and among the fastest growing in the world, Lawal adds.
The executive says he plans to take CAMAC public in the U.S. as well. 'As the market conditions improve in the U.S. and Europe, we expect to have dual listings of our exploration and production assets that would include assets in Colombia and other countries at that time:'
Lawal is optimistic about the impact of the IPO. "This may well start the bridge between Africa and America, between business, commerce, and trading:' he says. "I suspect, with a successful listing there, we can testify to those who have the same ambitions. They can trade publicly in Nigeria while doing business in the U.S."
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|Title Annotation:||B.E 100s; Allied Energy P.L.C.|
|Date:||Nov 1, 2008|
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