China has invested over $1…
Louisiana is sinking much faster…
Exploration and production company Kuwait Energy plc said on Wednesday that it would be seeking an initial public offering on the main market of the London Stock Exchange, thus confirming reports from March that it was working on an IPO in London.
Kuwait Energy is working with Bank of America on an IPO in London that could value the Middle East-focused group at US$1 billion, according to people familiar with the plans, Bloomberg reported in early March. Back then, the report suggested that the listing could take place as soon as the first half of this year.
Today, Kuwait Energy said in its filing to the London Stock Exchange (LSE) that it intends to apply for admission of ordinary shares to the premium listing segment of the London bourse. Kuwait Energy expects the admission to take place in June 2017, and that following the admission, the company will be eligible for inclusion in the FTSE UK Indices.
Kuwait Energy expects to raise gross primary proceeds of around US$150 million from an issue of new shares. The company would use most of the proceeds to continue developing its assets, especially those in Iraq that are seen as contributing significantly to growth.
Should the IPO be successful, Kuwait Energy will become Kuwait’s first company to have been listed in London.
According to the filing to the LSE, Kuwait Energy had a total average daily working interest production of 24,432 boepd last year, compared to 24,988 boepd for 2015. Group revenue was US$138.9 million in 2016, down from US$155.6 million in 2015, and operating cash flow before movement in working capital stood at US$77.2 million, compared to US$79 million in 2015.
Related: Saudis To Retain Full Control Over Aramco’s Oil After IPO
The LSE, for its part, is looking to attract more companies from the Middle East, following the collapse in EU listings after the Brexit vote. According to Reuters, LSE Group chief executive Xavier Rolet joined UK’s Prime Minister Theresa May on her visit to Saudi Arabia in early April, to try to court Aramco for its upcoming listing. Aramco has plans to list shares on one or more international markets.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…