RAK Petroleum to restructure, IPO overseas

Proposed restructuring includes transferring majority of assets to newly formed Dutch company

(For illustrative purposes).

(For illustrative purposes).

RAK Petroleum Public Company Limited announced on Monday it would restructure and seek a listing on an international stock exchange.

The proposed restructuring includes transferring majority of the assets owned by the company and its subsidiaries to a newly formed Dutch company, which would be owned by another newly formed company in the UK, in exchange for shares of the UK firm. 

Those shares would then be issued to RAK Petroleum shareholders on a pro-rata basis as a return of capital.

The assets to be transferred include RAK Petroleum’s 42.8 percent share in DNO International ASA, a Norwegian-based oil exporter that was the first foreign company to begin pumping oil in Iraq since the 1970s.

RAK Petroleum merged with DNO in November 2011. It is listed on the Oslo Stock Exchange.

In a statement on Monday, RAK Petroleum said during an extraordinary meeting on Sunday shareholders had approved a plan to decrease capital prior to the distribution of shares in the UK company by diluting existing shares by ten times.

Old shares would be cancelled and new shares in the UK company issued.

The UK company would then seek to list on a major European or North American stock exchange.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Power to the people in Saudi Arabia

Power to the people in Saudi Arabia

As Saudi Arabia fights to control surging electricity demand...

The upstream movement: Oil producers must invest to avoid another crisis

The upstream movement: Oil producers must invest to avoid another crisis

While oil producers continue to debate a reduction in output...

Saudi's Naimi's battles against Western 'greed' shine light on Aramco IPO

Saudi's Naimi's battles against Western 'greed' shine light on Aramco IPO

Former minister releases memoirs 'Out of the Desert'; reveals...

Most Discussed
sponsoredTracking