SWALA OIL TO LIST ON DAR ES SALAAM STOCK EXCHANGE

Dar es Salaam — Swala Oil and Gas Tanzania Plc said it will now list on the Enterprise Growth Market (EGM) on the Dar es Salaam Stock Market.

This comes after its Intial Public Offering (IPO) was overscribed. Swala Oil (Tanzania) is a subsidiary of Swala Energy of Australia who own 65% of the the shareholdings.

Swala Oil CEO, Dr. David Ridge said, "With the successful completion of the IPO the company will now proceed to list on the Enterprise Growth Market of the Dar es Salaam Stock Exchange."

The company said in a statement last week, it has successfully completed its IPO and the placement of 13.3 million shares with 1,869 new and existing shareholders.

The IPO was oversubscribed, generating interest both within Tanzanian and amongst the Tanzanian Diaspora.

Ridge said the Capital Markets and Securities Authority (CMSA) allowed oversubscription through the application of a green-shoe option.

Ridge said they are anticipated listing its allotment on July 25, 2014.

He said the success of this first IPO in the oil and gas sector is a testament to the professionalism of their advisors, the regulators and to the strategic approach taken by the company.

He said Tanzanian investors clearly have the appetite and the ability to participate in the wealth creation that accompanies the development of the Tanzanian natural resources.

Recently, Abdullah Mwinyi, a director at Swala Oil (Tanzania), said in a statement, "We strongly believe that Tanzanians should be given an opportunity to participate in the oil and gas business."

"We expect that this will grow as more companies seek to involve local investors he said adding that we are delighted to welcome so many new shareholders to our registry and we look forward to continuing to create value for them and for our existing shareholders."

Two weeks ago, Swala announced that its IPO attracted over 100 new investors, who have applied just a few days after the offer was made.

Swala opened its IPO on the June 9th this year and almost immediately received significant interest from within Tanzania, the East African Community and overseas.

Ridge said they know people keenly following our progress and how Tanzania responds to this first oil and gas listing.

"The interest in Swala's IPO is extremely positive, with over 100 new investors applying for shares within the first few days of the offer," Ridge answered.

Swala offered 9.6 million ordinary shares to Tanzanians at a price of Tsh500 ($0.297) per share to raise up to Tsh4.8 billion ($2.85 million), this amount is before costs and expenses.

The official launch of Swala's IPO comes following its official approval from the Tanzania Capital Markets and Securities Authority (CMSA), making it the first of such offering in the oil and gas industry in East Africa.

"Investing in oil and gas shares is means for economic diversification for any individual and it allows interested parties to own a stake in a fast growing business," the CEO said.

He added they are grateful to the government, Tanzania Petroleum Development Corporation (TPDC) and the CMSA for allowing them to become East Africa's first public owned oil and gas company.

The offer officially closed on July 4th 2014. There were no maximum subscription limit, but a minimum subscription of 100 shares per person was required.

Swala Energy also has holdings in Kenya and Zambia.