Delek Group Ltd. (TASE:DLEKG) North Sea energy exploration and production unit Ithaca Energy has officially announced its intention of listing its shares for trading on the London Stock Exchange. Ithaca will offer a relatively small stake, mainly of shares currently owned by Delek Group, controlled by Yitzhak Tshuva. Ithaca's oil and gas fields are off the east coast of Scotland and most of its produce is sold to the UK.
No details about the offering's valuation were disclosed but last month "Bloomberg" reported that anonymous sources had estimated that Ithaca would offer shares worth $1 billion at a company valuation of $6 billion.
Ithaca reported today that as of June 30, 2022, it had a North Sea energy portfolio of 28 producing field interests in the UKCS, of which Ithaca Energy is the operator of eight fields, which account for about 63% of the Group's 2P reserves and 2C resources. The 2P reserves were 244 mmboe, aggregate 2C contingent resources of 302 mmboe and Ithaca said it had delivered a reserves replacement ratio of about 230% between January 2019 and June 2022. The company said that it believes it has sufficient development opportunities within its portfolio to enable production to be increased to over 100 kboe/d in the medium-term.
Goldman Sachs and Morgan Stanley will act as joint coordinators of the IPO while HSBC Bank plc, Jefferies, and Merrill Lynch will act as joint book-runners, and ING Bank N.V. will act as co-lead manager.
Usually in the UK, an IPO takes place between three to five weeks after publication of an Expected Intention to Float (EITF), which means the flotation should take place in November.
Ithaca said that after the flotation, the public will hold at least 10% of the company's shares in order for it to be listed in the FTSE UK indices.
Delek Group CEO Idan Wallace said, "Delek has invested a large amount of capital in Ithaca Energy since we acquired it in 2017, delivering significant value for our shareholders. A London listing is the natural next step, allowing Ithaca Energy to flourish as an independent company with its own capital allocation policy and the potential to generate substantial value for all its shareholders. I am proud of the work the Ithaca Energy team has done and Delek looks forward to supporting Ithaca Energy as a long-term shareholder."
Ithaca Energy executive chairman Gilad Myerson added, "I am incredibly proud of the transformation Ithaca Energy has undergone over the past three years to become one of the UK's leading independent oil and gas companies. Following the Siccar Point acquisition, Ithaca Energy now has material scale and portfolio longevity, with significant growth opportunities.
"Our strategy is simple - by buying, building and boosting assets we aim to increase value while generating attractive and sustainable returns to shareholders. Our track record of value creation is exceptionally strong and we have a deeply experienced team in place who will continue to deliver. Our strategy is aligned with the UK Government's Energy Security Strategy and we are proud to be investing in the UK at a time when domestic energy security could not be more important."
Ithaca Energy CEO Alan Bruce said, "With the opportunities we have ahead of us, there has never been a more exciting time to be leading Ithaca Energy. Our mission is to help meet the energy needs of the UK while operating in a sustainable manner. Our goal is to maximize value through the safe, efficient and responsible development and production of our assets. Our people are core to everything we do and their safety is my number one priority. I would like to thank them all for their continued hard work and ongoing commitment to the business."
Published by Globes, Israel business news - en.globes.co.il - on October 18, 2022.
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