RAK Petroleum to restructure, IPO overseas

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(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.

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!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Crude control

Crude control

The startling fall in the oil price has renewed questions about...

Saudi Arabia, Kuwait shared zone tensions underlie oilfield closure

Saudi Arabia, Kuwait shared zone tensions underlie oilfield closure

Crude output from jointly-run offshore Khafji oilfield has been...

Petroleum producers shift attention from Middle East: Kemp

Petroleum producers shift attention from Middle East: Kemp

Following four decades of war, sanctions, nationalisation and...

Most Discussed