RAK Petroleum said it plans to launch an IPO (Initial Public Offering) to raise $25 million and list its shares on Oslo Bors.
“With the listing we will build on our track record of robust shareholder returns by increasing strategic flexibility and enhancing our access to capital markets to fund growth,” Bijan Mossavar-Rahmani, chairman and chief executive officer said in a statement.
The company expects to complete the offer by November. The IPO will comprise an offering to institutional and retail investors in Norway and a private placement to certain institutional investors internationally.
Current shareholders have also been offered the opportunity to place their shares into the offering, the company said.
“The size is very small but it’s a good step for the company to raise funds outside the region. It will enhance transparency and corporate governance,” Tariq Qaqish, head of asset management, Al Mal Capital, who manages a portfolio of Dh500 million.
“This also exhibits a strong recovery in investor confidence and growing cash flows in the world capital markets,” said Qaqish.
RAK Petroleum reported a net profit of Dh58.1 million for the year ended December 2013, marking a fifth consecutive year of profitability.
RAK Petroleum said its assets included a 42.8 per cent stake in DNO ASA, an Oslo-listed oil and gas company with operations in the Middle East, and a 100 per cent stake in Mondoil Enterprises, which holds an indirect 33.3 per cent stake in Foxtrot International, owner of oil and gas interests in Ivory Coast.
ABG Sundal Collier Norge will act as Global Coordinator, joint lead manager and joint bookrunner in the offering and DNB Markets, a unit of DNB Bank will act as joint lead manager and joint bookrunner.