Oil and gas IPOs raise 64% more in first half

London: Oil and gas companies raised 64 per cent more money in initial public offerings (IPOs) in the first six months of 2008 as record oil prices boosted the size of share sales, Ernst & Young said.

Globally, 25 IPOs raised $7.4 billion, compared with 36 listings raising $4.5 billion in the same period last year, Ernst & Young said in an e-mailed statement yesterday.

The value was boosted by high oil prices and the $4.1 billion listing of the Brazilian company OGX Petroleo and Gas Participacoes, the report said.

Oil, which surged to a record $147.27 a barrel on July 11, fell to $120.42 yesterday, the lowest since May 6.

"There is still considerable appetite across the world for oil and gas IPOs," Alec Carstairs, the partner at Ernst & Young in charge of oil and gas, said in a phone interview from Aberdeen, Scotland. He said large international oil companies with a lot of cash are acquiring smaller companies.

Oil and gas IPOs rose to seven from six in London, while the value declined to $700 million in the first half of 2008 from $1 billion a year earlier. "London continues to be a strong source of capital" and benefits from market volatility in the US, Carstairs said.

Overall, the number of the oil and gas initial share sales fell in the first half of 2008, Ernst & Young said. In the US, Canada and Australia, the number of IPOs and the money raised fell.

Seven companies were listed in Asia in the first half of 2008, raising $884 million, up from three companies raising $54 million in the same period last year, according to the report.