ITHACA Energy, the oil and gas giant that plans to develop the controversial Cambo field west of Shetland, has been valued at nearly $3 billion as shares in the company debuted on the stock market this morning.
The valuation is based on an initial share offering at 250p per share, with the offer representing around 10.4 per cent of the company’s issued share capital on admission to the main market.
Based on the offer price, Ithaca said its market capitalisation was approximately £2.5 billion ($2.9 billion) at the start of trading.
However, the offer price came in at the bottom end of the previously reported indicative price range of 250p to 310p for the IPO.
The backing for the flotation underlines the resurgent appetite among investors for North Sea oil and gas companies, which has been revived as the UK takes steps to improve energy security following Russia’s war on Ukraine. It will also allow Delek, Ithaca’s Israeli owner, to recoup some of the investment it made when it acquired Ithaca for £1 billion in 2017.
Ithaca is one of the biggest producers of oil and gas in the North Sea. It ramped up its presence in the area in April, when it acquired Siccar Point Energy for $1.1bn – a deal that gave it a majority stake in the 170 million barrel Cambo field.
Cambo has been at the centre of controversy since First Minister Nicola Sturgeon said during the COP36 conference on climate change in Glasgow last year that she would oppose its development. Siccar initially planned to progress the field with Shell if its plans were approved by the UK Government.
Gilad Myerson, executive chairman of Ithaca Energy, said this morning: “I am delighted with the outcome of our IPO. We have received great support from a high-quality selection of institutional investors and I am excited to welcome them on board as we continue to create value in the public markets.
"Ithaca Energy has undergone a transformation over the past three years to become one of the UK’s leading independent oil and gas companies and I am very excited for what lies ahead as we continue our journey in the public markets.”
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