Vaar Energi's Oslo IPO may value the Eni spin-off at $9 bln (updated)

Sparebank 1 Sorost-Norge

04/02/2022 07:18

(Adds background, detail)
    By Terje Solsvik
    OSLO, Feb 4 (Reuters) - Oil and gas firm Vaar Energi said on
Friday its planned stock market listing in Oslo this month could
value the Eni  ENI.MI  spin-off at up to 79 billion Norwegian
crowns ($9.1 billion).
    The touted price tag could make Vaar Norway's third largest
new stock market entrant of all time, exceeded only by the 2001
initial public offering (IPO) of oil firm Equinor  EQNR.OL  and
the 2021 listing of warehouse robotics firm AutoStore  AUTO.OL .
    Eni last month announced its intention to float https://www.reuters.com/article/eni-vaar-ipo-idUSKBN2JY0DK
 Vaar on Euronext's Norwegian stock market, one of several moves
by the Italian energy group to free up cash from legacy fossil
fuel businesses to fund its green drive.
    Vaar said on Friday its shares would be sold at between 28
and 31.5 Norwegian crowns each, valuing the company at between
70 billion and 79 billion crowns, with an aim to start trading
on Feb. 16.
    The offering will initially comprise 8.8% of Vaar's shares,
with an option to increase the size of the IPO to 12.7% of the
stock, Vaar said.
    Eni now owns 69.85% of Vaar and has said it will remain a
majority shareholder. Private equity investor HitecVision, the
junior partner in the joint venture, holds the remaining 30.15%.
    Petroleum industry IPOs have been a tough sell in recent
years, with high-profile companies including Wintershall DEA and
Neptune Energy repeatedly delaying listings. But oil and gas
prices have recently surged, reviving investor appetite.
    On Friday, Vaar raised its projected 2022 dividend to a
minimum of $800 million from $700 million announced last month.
Of this, the planned first-quarter payout will be $225 million,
up from $200 million projected earlier, it said.
    Vaar produced around 247,000 barrels of oil equivalent a day
in the third quarter of 2021 and targets around 350,000 barrels
per day by the end of 2025.
    Financial advisors involved in the IPO are DNB Markets, J.P.
Morgan, Morgan Stanley, SpareBank 1 Markets, ABG Sundal Collier,
BofA Securities, Carnegie, Jefferies and Pareto Securities.

    ($1 = 8.6999 Norwegian crowns)

 (Reporting by Terje Solsvik; Editing by Kim Coghill and Edmund
Blair)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70))