Ithaca Energy has confirmed its upcoming London IPO is being priced at 250p per share, the bottom-end of the expected range, valuing the Israeli-owned North Sea oil and gas producer at £2.5bn (US$2.9bn) - down from the £3.1bn indicated a week ago.
Through the public offer the company intends to sell 105mln shares, to raise £262.5mln of IPO proceeds, which would represent 10.4% of the company’s newly enlarged share capital.
The company, in a statement, meanwhile confirmed that some 11.5mln existing shares held by Delek Group will be sold, which if fully taken up will see the number of shares in public hands increase to 11.9%.
Once concluded the IPO will return Ithaca to the public market after its transformation whilst in private hands.
"I am delighted with the outcome of our IPO,” said executive chair Gilad Myerson.
“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."
The company was bought by Israeli group Dekel in 2017 for US$646mln but has since bulked up considerably with other North Sea deals.
Production in the first half of 2022 was marked at around 66,700 barrels of oil equivalent per day (boed).
The company is taking advantage of a change to stock exchange rules last year that reduced the free float requirement to 10% from 25%.
Trading in the shares is scheduled to start on November 9, 2022, with proceeds of the new share sale earmarked to reduce Ithaca's debt.