Toronto-listed TransGlobe Energy Corporation (TSE:TGL) has announced that it intends to bring the company to London, with a proposed listing on the AIM market.
It will introduce a relatively strong producer to the junior market. In the first quarter, TransGlobe produced some 14,366 barrels oil equivalent per day - with 11,776 bopd coming from Egypt and 2,590 boepd flowing in Canada.
The company’s territories are familiar to many AIM oil investors. Notably, companies such as SDX Energy Inc (LON:SDX) and Cabot Energy PLC (LON:CAB) have for example found favour in the market in recent months.
TransGlobe, in an accompanying operations update, highlighted that it is actively advancing growth operations in both countries.
The proposed move to London follows what the company described as an extensive review of stock market listing and its investor base.
It concluded that the company’s traditional North American investor base and liquidity has “diminished significantly” over the past six years, following the political upheaval in Egypt (circa 2011) and the subsequent downturn in crude oil prices.
“Although oil prices have shown tangible and structural improvement over the past six to nine months the company’s share price and liquidity have not responded to that improvement despite significant increases in profitability and funds flow,” the company said in a statement.
Seeking London's significant pool of investors
TransGlobe added: “The company concluded that a listing on the London Stock Exchange’s AIM market will provide access to a significant pool of specialist investors who currently do not have adequate access to TransGlobe’s common shares due to time-zone challenges and European market investment requirements.
“The company also believes that a listing on the AIM market may eventually improve its profile by placing TransGlobe alongside many of its international E&P peers.”
Monday’s statement also said that TransGlobe has appointed Canaccord Genuity as its nominated advisor and preparations are at an advanced stage for an AIM Admission filing. Additionally, the company intends to establish an executive office in London by September.
A shareholder meeting is slated to take place in Calgary on May 10.