BW Offshore Planning IPO of E&P Unit
FPSO operator and offshore production services company BW Offshore Ltd. plans to list its 68.6% owned upstream subsidiary, BW Energy Ltd. The proposed IPO on the Oslo Stock Exchange (OSE) is expected to be completed during Q1-2020. BW Group Ltd., which owns a 49.9% stake in BW Offshore, currently holds the remaining shares of BW Energy. The IPO will include the distribution of existing BW Energy shares to BW Offshore shareholders, along with a fresh equity issuance to raise approximately US$175 million at an expected pre-money valuation of between US$700 to 800 million. BW Energy is currently focused on upstream operations in Gabon and Brazil, and currently holds a 73.5% operated interest in the producing Dussafu Marine Permit offshore Gabon, and a 95% operated interest in the Maromba Field currently under development in the Campos Basin offshore Brazil. The Company reported total net 2P+2C reserves of 247 million barrels at the start of 2020, while gross average production from Dussafu was approximately 11,800 barrels per day during 2019. BW Energy acquired the Maromba Field from Petrobras and Chevron during 2019, and the field is expected to come onstream in late 2022. DNB Markets and Pareto Securities have been retained as joint global coordinators and bookrunners for the IPO. Arctic Securities, Danske Bank, Nordea Bank and Swedbank in cooperation with Kepler Cheuvreux are engaged as co-managers.