Mozambique’s oil company considers IPO in South Africa or Europe

29 April 2013

Mozambican oil company Petróleos de Moçambique (Petromoc), the state distributor of oil derivatives is considering the possibility of carrying out an initial public offering (IPO) in South Africa or in Europe, the chairman of the company said Friday.

Speaking to the Wall Street Journal, Nuno de Oliveira said that the company was also analysing, along with Banco Internacional de Moçambique, several details such as on which stock exchange to launch the IPO or the amount of cash to be raised through the operation.

On the sidelines of the ceremony to sign a cooperation agreement with Malaysian company Hyrax Oil Snd Bhd to build an oil derivatives factory in Mozambique, the chairman of Petromoc said that the IPO was intended to increase the company’s exposure as well as to raise funds to carry out its expansion.

Petromoc has the largest network of fuel stations in Mozambique – 119 – and also sells lubricants and manages storage facilities and oil pipelines at the country’s main ports.

Nuno de Oliveira also said that the company planned to build a factory to process 40,000 barrels of gas per day into fuel in partnership with South African company PetroSA, which is expected to cost US$1 billion, and the economic feasibility study for which is due to be concluded in June. (macauhub)