Investing
Ithaca Energy closes in on London’s biggest 2022 listing
Published by Jessica Weisman-Pitts
Posted on November 2, 2022
2 min readLast updated: February 3, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on November 2, 2022
2 min readLast updated: February 3, 2026
LONDON (Reuters) -Ithaca Energy’s London listing could value the company at up to 3.1 billion pounds ($3.56 billion), bookrunners said on Wednesday, after books were swiftly covered following the launch of what is set to be London’s largest IPO this year.
LONDON (Reuters) -Ithaca Energy’s London listing could value the company at up to 3.1 billion pounds ($3.56 billion), bookrunners said on Wednesday, after books were swiftly covered following the launch of what is set to be London’s largest IPO this year.
Shares in the North Sea oil and gas producer are being offered at 250 to 310 pence, implying a market value of 2.5 billion to 3.1 billion pounds ($2.87 billion to $3.56 billion).
Ithaca, which produced about 66,700 barrels of oil equivalent per day (boed) in the first half of the year, is expected to float next week in a rare sign of life in Europe’s market for new listings, where activity has plummeted since the outbreak of war between Russia and Ukraine.
Porsche’s listing in September ranks as the only other notable initial public offering in 2022 and proceeds from ECM deals in Europe dropped 82% to $8 billion in the third quarter of the year.
There is renewed interest in the North Sea region due to the energy crisis, with Britain recently launching its first oil and gas exploration licensing round since 2019 in an effort to boost domestic production.
Investors are focused on Ithaca’s dividend yield, with the price range corresponding to a dividend yield of 11.3%-14% for 2023, a bookrunner involved said.
Ithaca’s main peers include Var Energi, Aker BP, Harbour Energy and Energean.
Ithaca, owned by Tel Aviv-listed Delek Group, expects to be eligible for inclusion in the FTSE UK indices.
The company is aiming for a slim free-float of 12%, making use of a change to listing requirements implemented last year by the London Stock Exchange that reduced the amount of shares an issuer is required to have in public hands from 25% to 10%.
Bookbuilding will run until November 8 with the first day of trading on November 9. Proceeds of the share sale will be used to pay down Ithaca’s debt, with owner Delek looking to cut its stake while remaining a controlling shareholder.
Goldman Sachs and Morgan Stanley are joint global co-ordinators on the deal while HSBC, Jefferies and Bank of America are joint bookrunners, with ING acting as co-lead manager.
($1 = 0.8702 pounds)
(Reporting by Huw Jones, Sinead Cruise and Lucy Raitano; editing by Louise Heavens and Elaine Hardcastle)
An IPO, or Initial Public Offering, is the process through which a private company offers shares to the public for the first time, allowing it to raise capital from public investors.
Market capitalization is the total market value of a company's outstanding shares, calculated by multiplying the share price by the total number of shares. It reflects the company's size and market value.
Dividend yield is a financial ratio that shows how much a company pays in dividends each year relative to its share price. It is expressed as a percentage and indicates the return on investment from dividends.
A bookrunner is a financial institution or investment bank that manages the issuance of securities, including IPOs. They are responsible for underwriting and distributing the shares to investors.
Free-float refers to the percentage of a company's shares that are available for trading by the public, excluding shares held by insiders or major shareholders. It indicates the liquidity of the stock.
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