Ithaca Energy is set for London’s biggest IPO in 2022 next week

Ithaca Energy plans to launch an Initial Public Offering (IPO) on London Stock Exchange next week. This could put the North Sea oil producer at up to 3.0 billion pounds. It would be London’s biggest IPO this year.

Bookrunners for the deal stated Wednesday that shares in the company, which is owned by the Tel Aviv-listed Delek Group, are being offered at 250-310 pence per share. This would imply a market value between 2.5 billion and 3.1 billion pounds ($2.87 to $3.56 trillion).

Ithaca produced approximately 66,700 barrels per day of oil equivalent (boed), in the first half. This is a rare sign that there’s still life in Europe’s IPO markets, where activity has dropped since the conflict between Russia and Ukraine.

Due to a global economic slowdown, and febrile markets, the proceeds from European share sales have fallen 82% to $8 Billion in the third quarter.

The company is targeting a small free float of only 12%. This is due to a London Stock Exchange change to listing requirements that were implemented last year.

It reduced the number of shares an issuer must have in public hands, from 25% to 10%.

Europe is struggling with its energy crisis. There is renewed interest in the North Sea region. Britain launched its first oil and natural gas exploration licensing round in 2019 to increase domestic production.

Ithaca’s dividend yield is what investors are focusing on, according to a bookrunner. The price range corresponds to a dividend yield between 11.3%-14% in 2023.

Morgan Stanley and Goldman Sachs are the joint global coordinators for this deal, while HSBC, Jefferies and Bank of America are joint bookrunners with ING acting as co-lead manager

Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned

Weekly Newsletter

Sign up to receive exclusive stock market content in your inbox, once a week.

We don’t spam! Read our privacy policy for more info.