Caverton Offshore Group, a leading oil and gas service firm providing marine and aviation logistics, is set to spur market capitalization at the Nigerian Stock Exchange by N32 billion ($198 million) following its IPO, officially set to take off on the 20th of May.
“The listing represents a major milestone for us in our steady march towards becoming the leading provider of oil and gas logistics services in sub-Saharan Africa,” Mr. Aderemi Makanjuola, chairman of the company was quoted by Nigerian daily, ThisDay.
The Nigerian oil servicing firm will offer 3.35 billion shares on the NSE for an initial offer of N9.50 ($0.06) per share, adding up to N32 billion ($198 million) in potential investment inflow.
“We are extremely pleased as Caverton enters its next phase of growth as a listed company,” he added.
“Leveraging on our expertise and execution capabilities, we plan to embark immediately on fleet expansion and the development of new service areas in the offshore marine and aviation sectors.”
Aside expanding its fleet, Caverton is keen to explore new market entry, according to its chairman. “We plan to create a balanced and diversified portfolio and we are pleased to have strong technical partners on board with us.”
With the IPO, Caverton becomes the first offshore support firm to have its shares listed on the bourse, a similar feet achieved by Seplat for becoming the first indigenous upstream operator to list on the NSE.
Surge In Market Cap
Since the near collapse of the financial market in 2008, owing to a global meltdown, a series of strategies including tighter regulatory frameworks and reforms in diverse sectors such as agric, power, oil and gas and financial market has heralded a period of unprecedented growth and stability in the country’s equity markets.
Nigeria’s equity market capitalization has exceeded N13.23 trillion recorded in December 2013, a 47 percent jump from 2012 numbers. NSE capitalization of N19.08 trillion ($119.41 billion) – the second fastest growing on the continent after Zambia’s – has been further boosted by 1 percent, following Seplat’s listing last month.
This, among other factors, has attracted a number of foreign investors, with FDI inflow exceeding $85 billion as at 2013 count, as well as boosted local participation with confidence in Africa’s largest economy still high. Local participation grew from 20 percent in 2012 to 50 percent at the end of 2013, a damming endorsement of the positive returns recorded since 2008. (VENTURES AFRICA)