(Corrects para 2 to clarify net income, not net revenue, reached $232 million)
LONDON, June 12 (Reuters) - Offshore oil rig operator Shelf Drilling said on Thursday it plans to raise $500 million in an initial public offering in the London Stock Exchange.
The Dubai-based contractor, which said revenues totalled $1.2 billion and net income reached $232 million in 2013, specialises in shallow water offshore drilling services to oil and gas customers.
The company plans a payout ratio of between 40 to 60 percent of net income, Chief Executive Officer David Mullen said.
Shelf Drilling will seek to grow by reactivating idle rigs, adding new rigs to the fleet which are supported by five-year contracts with Chevron in Thailand and by selectively acquire assets in the market, Mullen said.
Shelf Drilling was created in 2012 after buying 37 jackup rigs from Swiss-based Transocean. It operates mostly in the Middle East, Southeast Asia and West Africa. The company is currently owned by private equity firms Castle Harlan, CHAMP and Lime Rock.
Morgan Stanley and Goldman Sachs will underwrite and book run the IPO.
Reporting by Ron Bousso; editing by Jason Neely