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African focussed support services and logistics company Africa Oilfield Logistics Ltd has announced its intention to dual list on the Growth Enterprise Market Segment (‘GEMS’) of the Nairobi Securities Exchange by way of an introduction and private placing of up to 10% of the Company’s enlarged share capital, such private placing being offered solely in Kenya.

Completion of the Kenyan Listing will make Africa Oilfield the first AIM listed company to join the Kenyan exchange and marks a further step in the Company’s development as it looks to expand its existing support services business in East Africa.

“Our proposed dual listing on the Nairobi Securities Exchange is a further exciting step forwards and one which will establish the Company as a pioneer in this area. We expect that by taking this opportunity we will further align the Company with the strong regional growth currently ongoing and demonstrate in a tangible way our commitment to operating in both Kenya and the East African region as a whole. We hope that shareholders will share this vision and support the resolutions being proposed at the meeting to be held on 5 November 2014, ” said Chief Executive Officer of Africa Oilfield Carl Esprey.

The company says a Circular has been sent to shareholders giving notice of a general meeting for the purpose of approving resolutions that will enable the Company to undertake the Kenyan Listing.

As set out in the Circular, the Company will be seeking shareholder approval to resolutions to give the directors authority to issue new shares and to disapply pre-emption rights, which when passed will enable the Company to issue new shares and thereby effect the Kenyan Listing.

Following completion of the dual listing, the Company’s ordinary shares will be fully transferrable between the AIM and GEMS markets with any funds raised pursuant to the proposed placing in Kenya being applied towards growth initiatives with the Company’s current financing requirements well covered following the successful £7 million financing completed in August 2014.

“Through our primary investment into Ardan Risk & Support Services, completion of which we expect to occur following the general meeting to be held on 22 October 2014, we have already built a strong presence within the support services and logistics sector, and are currently working for a number of international companies operating in the East African region,” Esprey concluded.

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The recent discoveries of oil and gas in East Africa are boosting infrastructural developments in the East African region, according to the Deloitte on Africa: African Construction Trends Report 2013.

The quests for better transport infrastructure, reliable energy are also driving this growth, according to the report.

Of the projects surveyed throughout the entire African continent, the East African region accounted for 93 projects, representing 29% of all the surveyed works, with a value of about US$67.7b.

At the unveiling of the report in Kampala on Tuesday, Dr. Mark Smith, Deloitte’s partner for Infrastructure and Capital Projects noted however, that development of public sector projects such as road and railway works, ports development dwarf those orchestrated by the private players.

“In the East Africa region, over 70% are projects that are being built for the public sector,” he said.

Smith noted that with the shifting from exploration to production of oil reserves in the near future, developments in the region will increase even further and edge closer to the matching the investments in the public sector.

The Southern Africa region—boosting of Africa’s biggest economy; South Africa, leads the way with 124 projects underway, accounting for 38% of all African projects.

West Africa has attracted investment worth $15.3b, accounting to 5% of the continent’s projects.

North Africa, accounts for 7% of the surveyed infrastructure development valued at about $6.7b.

Pottas said the political upheaval that was started by the Arab spring was the major reason for North Africa’s lagging behind.

Similarly, Central Africa, which is a potential continental hydro power hub, hosts only 5% of the continents projects with a value of about $15.3b. The insecurity in the region is also responsible for this trend.

The report surveyed projects with the value of more than $50m, on which construction began, but was not completed before June 1 this year.

Story by New Vision

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