3i backed Petrofac in £742m flotation on London Stock Exchange
3i, Europe's leading private equity and venture capital company, has realised over £120m/$212m through the IPO of Petrofac, the international oil and gas facilities service provider, on the London Stock Exchange today at a market capitalisation of £742m/$1,309m.
3i originally invested £22m/$40m for a 16.2% stake in May 2002. Given the strong market appetite of the offering, 3i has sold its entire stake in Petrofac. 3i's proceeds represent a money multiple of 5.3 times on its investment and an IRR of 67%.
3i's funding was used to reinforce the balance sheet during a period of rapid growth and to help Petrofac transform itself from an Engineering Procurement Construction contractor into a total integrated facilities management solutions provider.
In addition to providing funding, 3i introduced Michael Press as an independent Non-Executive Director and Keith Roberts, the eventual CFO, to the business. 3i also identified training business RGIT Montrose, which was ultimately bought by Petrofac in February 2004, as an acquisition target.
The Petrofac board together with 3i decided the time was right for Petrofac to seek an IPO in order to provide liquidity for the existing shareholders, which includes around 500 employees, and provides the means to incentivise a wider employee group.
Mike Hill, 3i Investment Director commented: "It has been a great pleasure to work with Petrofac and its executive team over the past few years, and particularly rewarding to see the business develop and grow into a total integrated facilities management solutions provider. We are delighted that Petrofac has achieved its listing on the London Stock Exchange, providing liquidity for shareholders, many of whom are employees, as well as providing us with a successful exit. Petrofac is now well positioned for continued growth as a listed company".
Group Chief Executive of Petrofac, Ayman Asfari added: "3i has played an active role in helping Petrofac to reach this point of successful listing on the London Stock Exchange today. They have provided financial support, worked with us to build the board and have, through their sector knowledge, helped us identify and access acquisition targets."
Notes to editors
3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital and Venture Capital and invest across Europe, in the United States and in Asia Pacific. 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 has funded 24% of all European oil & gas private equity deals in the last three years and manages an investment portfolio of more than 40 companies in the exploration and production (E&P) and service sectors.
The current portfolio includes Vetco International (ABB's former upstream oil and gas business), Petrofac, a surface facilities solutions provider and EDP, an oilfield development project manager. Other portfolio companies include Norwegian Terra Seismic, a 4C seismic technology company, Singapore's Pearl Energy and Finnish oil spill response company Lamor Corporation.
Previous investments include John Wood Group plc, the UK's largest oil service company, which was floated in 2002; Venture Production plc, one of the UK continental shelf's newest operators, also floated in 2002; and Sensa, an oilfield technology company sold to Schlumberger.