Home Stock list Ithaca Energy prepares for London’s biggest IPO in 2022

Ithaca Energy prepares for London’s biggest IPO in 2022


LONDON, Nov 2 (Reuters) – Ithaca Energy’s (IPO-IHEG.L) plan to launch an initial public offering (IPO) on the London Stock Exchange next week could add value to the offshore oil and gas producer du Nord up to £3.1bn, making it London’s biggest IPO this year.

Shares in the company – owned by Tel Aviv-listed Delek Group (DLEKG.TA) – are offered at 250 to 310 pence per share, implying a market value of 2.5 billion to 3.1 billion pounds ( $2.87 billion to $3.56 billion), bookrunners on the deal announced Wednesday.

Ithaca, which produced around 66,700 barrels of oil equivalent per day (boed) in the first half of the year, is set to make its market debut on November 9 in a rare sign of life in the European IPO market. , where activity has fallen since the outbreak of the war between Russia and Ukraine.

Proceeds from European equity sales and other equity capital markets transactions in the region fell 82% to $8 billion in the third quarter of the year amid a global economic slowdown and feverish markets .

In September, Porsche’s (P911_p.DE) debut on the €75 billion Frankfurt market became Europe’s biggest IPO this year, while the London Stock Exchange saw only one handful of minor deals, including the IPO of New Energy One Acquisition Corp in March, a white-check company backed by Eni (ENI.MI) and Livestream LLC.

As Europe grapples with the energy crisis, the North Sea region is attracting renewed interest, with Britain recently launching its first round of oil and gas exploration licenses since 2019 with the aim to stimulate domestic production.

Investors are focused on Ithaca’s dividend yield, with the price range corresponding to an 11.3% to 14% dividend yield for 2023, an involved bookrunner said.

Ithaca, which competes with Var Energi (VAR.OL), Aker BP (AKRBP.OL), Harbor Energy (HBR.L) and Energean (ENOG.L), expects to be eligible for inclusion in the FTSE UK indices .

The company is aiming for a thin 12% free float, using a change to listing requirements implemented last year by the London Stock Exchange that reduced the number of shares an issuer is required to hold. public from 25% to 10%. %.

Goldman Sachs (GS.N) and Morgan Stanley are the global co-coordinators of the transaction while HSBC (HSBA.L), Jefferies (JEF.N) and Bank of America (BAC.N) are joint bookrunners , with ING (INGA .AS) acting as co-manager.

($1 = 0.8702 pounds)

Reporting by Huw Jones, Sinead Cruise, Lucy Raitano and Andres Gonzalez; edited by Pamela Barbaglia, Louise Heavens and Elaine Hardcastle

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