With barely two weeks left for the share offer of oil giant, Tullow Plc to end, reports indicate that many investors are planning to purchase some of the shares from the receiving banks and brokerage houses.
Several investors, both individual and institutional, have shown interest in the share offer of the company.
Checks by 'City & Business Guide' at the receiving banks, Standard Chartered Bank and Agricultural Development Bank (ADB) revealed that the Initial Public Offer (IPO) of the UK firm will be oversubscribed.
Several individual investors are said to be preparing to acquire some of the 4,000,000 shares before the end of the month because of its benefits. Tullow has already stated that it will not extend the duration for the sale of its shares when the offer closes.
Some analysts and brokers, who spoke to this paper on condition of anonymity, noted that the impressive way in which Tullow launched its share IPO coupled with the massive marketing of the shares is boosting the share offer.
In the past, some IPOs of Ecobank Ghana and CAL Bank were characterized by massive advertisements and marketing which enabled many people to patronize the shares, leading to its oversubscription.
Tullow is offering four million of its nine million shares on the primary market at an offer price of GH�31 per share.
The offer price represents a 2.57 percent discount on the closing price of a Tullow share on the London Stock Exchange on June 10, 201.
The offer of Tullow shares on the GSE will give investors the opportunity to share in the future performance of Tullow�s operations in Ghana and more broadly across its global portfolio of assets, the company said. The shares are up for grabs from between June 13, 2011 and July 4, 2011 through the sponsoring broker, IC Securities.
The listing, which is expected to start trading in the second week of July, will be in two-folds, a share offer of new shares and a secondary one.
Currently Tullow Oil Ghana produces about 70,000 per barrel of crude oil on the average daily at the Jubilee Oilfield. The Jubilee Oilfield is expected to last for 25 years while new reserves will span several years. It has interests in two exploration blocks, Deepwater Tano and West Cape Three Points.
Source: Charles Nixon Yeboah
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