25th Oct 2022 10:40
(Alliance News) - Ithaca Energy Ltd on Tuesday confirmed its intention to float on the main market of the London Stock Exchange.
The UK North Sea exploration and production company which was formerly listed on AIM said the initial public offering price and the maximum number of shares to be sold in the offer will be determined following a book-building process.
Goldman Sachs Group Inc and Morgan Stanley will act as joint global co-ordinators while HSBC Bank PLC, Jefferies International Ltd and Merrill Lynch International will act as joint bookrunners.
The proceeds from the offer will repay existing shareholder debt, including a capital note to DKL Energy Ltd, and will pay the IPO expenses. DKL Energy, which is owned by Delek Group Ltd, is Ithaca's immediate shareholder. Delek may also sell existing shares, subject to the amount of gross proceeds raised.
Ithaca delisted from trading on AIM in the summer of 2017 following the completion of the takeover by Delek which was worth around USD646 million.
Ithaca will retain no proceeds from the offer, with all proceeds being received by Delek. Delek will reduce its current ownership stake in Ithaca, based on the proceeds raised, but will remain as a controlling shareholder.
Immediately following admission, the company will target a free float of at least 10% of its issued share capital and expects to be eligible for inclusion in the FTSE UK indices.
In addition, it is expected that up to a further 15% of the number of shares sold in the offer will be made available to an over-allotment option. The company will not receive any proceeds from the sale of over-allotment shares, all of which will be received by Delek.
By Chris Dorrell; [email protected]
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