By Staff writer
UAE-based oil and gas investment company says over 1.6 million shares will be issued under offering
RAK Petroleum, the UAE-based oil and gas investment company, has announced that it is proceeding with plans for an initial public offering and application for listing in Norway.
Prior to the listing, RAK Petroleum said it will transfer all of its assets, liabilities and business to a new UK company, RAK Petroleum plc, as part of a reorganisation approved by the shareholders in May 2013.
RAK Petroleum will be the listing entity with shareholders of RAK Petroleum receiving shares in the new entity pro rata to their current shareholding, the company said in a statement.
Subject to approval of the listing application and successful completion of the offering, the shares of RAK Petroleum plc are expected to commence trading on Oslo Børs on November 7, it added.
The size of the offering is approximately NOK20 million ($3.02 million) and it is expected that up to 1,602,564 new shares will be issued under the offering.
“Given market conditions that have severely depressed share prices in the oil and gas sector, we limited the size of the offering to the minimum necessary to attract sufficient numbers of Norwegian shareholders to allow us to proceed with the listing,” said Bijan Mossavar-Rahmani, RAK Petroleum PCL’s chairman and CEO.
“Once listed, as markets recover we expect to have the flexibility to launch more meaningful offerings at prices that more accurately reflect our underlying assets and our growth prospects,” he added.
“In the meantime, we expect that a few hundred Norwegian investors will pick up our shares at very attractive discounts and that’s fine, too,” Mossavar-Rahmani said.
Completion of the offering is conditional upon the approval of the board of directors of Oslo Børs.
The Financial Supervisory Authority of Norway has approved the prospectus prepared in connection with the offering and listing.