3i backed Salamander Energy in $405m IPO on London Stock Exchange
Salamander Energy plc, an upstream oil and gas exploration and production company focused on South East Asia, has listed today on the London Stock Exchange today at a market capitalisation of $405m, raising $200m.
3i invested $22.6m for a 15% stake in September 2005, and the IPO sees redemption of $11.2m of preference shares, with 3i continuing to hold 100% of its equity. The original funding was used to build a balanced portfolio of production and exploration assets in the SE Asia region, including producing oil and gas properties in Indonesia and Thailand, and some exciting further development and exploration properties. Salamander has 7,500 boepd net production, proven and probable reserves of 40m boe, and has built an exciting portfolio of development and exploration assets. The timing of the IPO coincides with first gas production from one of Salamander’s key assets – Phu Horm in NE Thailand.
3i’s investment in Salamander Energy is its second E&P investment in the region, and follows its $15m investment in Singapore-based Pearl Energy, an independent exploration and production business with a portfolio of oil and gas interests across Indonesia, Thailand and the Philippines, in August 2004. Pearl was listed on the Singapore Stock Exchange in 2005, and subsequently sold to Aabar Petroleum earlier this year. The Salamander IPO follows a host of other successful deals for 3i’s Oil, Gas & Power team, including the IPO of Revus Energy on the Oslo Stock Exchange, the IPO of Petrofac on the LSE, and the sale of CH4 Energy to Venture Production.
Mike Sibson, Director in 3i’s Oil, Gas and Power Team, commented: “It has been a pleasure working with the Salamander team and 3i is pleased to remain a shareholder as the company pursues its growth and development in South East Asia. The combination of the capital raised and the strong team makes Salamander a highly credible business which is now well positioned for continued growth as a listed company.”
James Menzies, CEO of Salamander Energy, commented: “3i’s backing and knowledge of South East Asia has been a great help for the company to reach this point of successful listing on the London Stock Exchange today. The flotation is a key step in allowing the business to pursue its growth aspirations.”
3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital, Venture Capital and Infrastructure and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.
3i manages an investment portfolio of 11 companies with a value of $1bn in the exploration and production (E&P) and service sectors.
The current oil & gas portfolio includes Vetco International (ABB's former upstream oil and gas business); EDP, an oilfield development project manager; Salamander Energy, an E&P company focused on South East Asia and Finnish oil spill response company Lamor Corporation.
Previous investments include Petrofac, the international oil and gas facilities service provider, which floated in October 2005; Revus Energy, the independent Norwegian upstream company, which floated in June 2005; Epcon Offshore, a designer and manufacturer of water treatment systems for the oil and gas industry and Specialised Petroleum Services Group, a leading provider of wellbore clean-up products and services for the oil and gas industry.