An initial public offering (IPO) is to be launched for Vår Energi, an oil and gas joint venture between Italian energy group Eni and Norwegian private equity firm Point Resources Holding, a HitecVision portfolio company.
The venture is set to be listed in Oslo, consisting of a public offering in Norway, Sweden, Finland, and Denmark, as well as some international investors. A timeline for the listing has not yet been announced.
The news comes as the market is seeing a sharp increase in energy prices and rising investor interest amidst the European gas shortage, offering the most attractive climate in years for an oil and gas IPO.
According to an Eni press release, the decision will “provide access to the Norwegian and international capital markets, allow the company to diversify its ownership structure and create a strong long-term shareholder base”.
The move also comes as part of Eni’s strategy to enhance its assets and free up new resources for the energy transition, as the company seeks to raise money to fund its shift away from oil.
Set up in 2018, Vår is one of the largest oil and gas producers in Norway, with output currently at 247,000 barrels of oil equivalent a day, and a target of around 350,000 barrels a day by the end of 2025, the company said.
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Shares held by Eni and HintecVision – 69.85% and 30.15% respectively – will be on offer, though Eni is anticipated to retain a majority of its stake. An announcement on the price range of Vår has not yet been announced, however Reuters reported in November last year that sources close to the matter estimated its value could be as much as $15bn.
Speaking to reporters on the IPO’s launch, Vår Chief Executive Torger Roed said: “My focus is to demonstrate what a strong company Vår is, and then valuation will follow from that.”