The worth of Seplat Petroleum Development Company Plc on the bourse just one year after listing has depreciated by N110 billion.
The only indigenous oil exploration and production firm on the NSE, Seplat got listed in April 2014 both on the Nigerian bourse and London Stock Exchange (LSE) after a successful $500 million initial public offering (IPO).
The stock was listed at N576 per share with a market capitalisation of N319 billion.
However, investigations have revealed that one year after the listing, the market capitalization of Seplat has plunged to N209 billion as at Monday, April 27. This shows a decline of N110 billion or 34 per cent. In terms of share price, the equity closed at N378 on Monday.
The excitement demand that welcomed the listing of Seplat had lifted the shares from the listing price of N576 on April 14 to N720.56 on July 2014. However, the stock has never reached that level again as it has continued on a downward slope due to the persistent bearish trend in the market.
A broker, who spoke on Seplat’s situation, said: “Since its listing, Seplat has not disappointed investors because it had paid an interim dividend and has also recommended a final dividend that would be paid next month. But investors are actually looking beyond that and are now concentrating on the future prospects. Considering the declining crude oil prices of investors are apprehensive, hence demand for the shares is weak.
This fall in capital implies that investors, who subscribed to the IPO have suffered a capital depreciation of 34 per cent.
However, in an effort to boost its capital structure and reposition the firm for future opportunities, Seplat last week secured a $1.4 billion facility.