Greek energy company Energean has raised £330 million ($460 million) in an IPO on the London Stock Exchange. The company said that the main use of the proceeds will go toward the development of the Karish and Tanin Israeli offshore gas fields. The money was raised at a company value of £695 million ($968 million) and Energean will trade under the ENOG ticker. Energean has said that it will consider dual listing on the Tel Aviv Stock Exchange (TASE).
Energean CEO Mathios Rigas said, "The proceeds of this primary raise will be used to deliver production from our flagship development project offshore Israel, Karish and Tanin, bringing competitive gas to the burgeoning Israeli market. With the project financing in place, the EPCIC contract with TechnipFMC agreed, and gas supply contracts for over 4 BCM per year underpinning our cashflow expectations on the project, this equity financing completes another key milestone that allows us to progress with FID. We are confident that our ability to acquire, de-risk and develop projects of significant scale can deliver a flow of new opportunities in the region and attractive returns for our shareholders."
Earlier this month, Energean signed a $1.275 billion financing deal for the development of Israel's Tanin and Karish offshore natural gas fields. The financing was led by Bank Hapoalim (TASE: POLI), which will provide $375 million while Morgan Stanley, Societe Generale, and Natixis will each provide $300 million.
Energean acquired the Karish and Tanin reservoirs after the natural gas plan was approved by the government requiring Tamar and Leviathan partners Delek Drilling LP (TASE: DEDR.L) and Noble Energy Inc. (NYSE: NBL) to sell their stakes in the fields. The Greek company has since signed deals to sell gas to Israeli companies at around $4 per Btu (British thermal unit), 33% less than the $6 per Btu that Israel Electric Corporation (IEC) (TASE: ELEC.B22) is paying for gas from Tamar.
Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2018
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