By Dominic Chopping
Norwegian oil-and-gas company Var Energi AS said Monday that it intends to launch an initial public offering of its shares and apply for a listing on Oslo Bors.
The IPO plan follows an announcement made by shareholders Eni SpA and HitecVision AS in October of their intention to initiate a strategic review regarding the future ownership structure of Var Energi to better pursue future growth and maximize value creation.
The company said the IPO is expected to consist of a sale of existing shares held by Eni and HitecVision, who currently own 69.85% and 30.15%, respectively, and is subject to approvals from Oslo Bors and the Norwegian Financial Supervisory Authority, as well as prevailing equity capital market conditions.
Eni and HitecVision intend to remain active owners after the IPO, with Eni intending to retain a majority stake, it said.
Var Energi is an independent oil-and-gas producer that conducts exploration, development and production activities exclusively on the Norwegian Continental Shelf. It was founded in 2018 through the merger of Eni Norge and Point Resources.
The company had total petroleum revenues for the nine months ending Sept. 30, 2021, of $3.8 billion and earnings before interest, tax, depreciation and amortization of $2.7 billion. Free cash flow for the period was $1.6 billion.
Write to Dominic Chopping at email@example.com
(END) Dow Jones Newswires