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LONDON/DUBAI, June 12 Shelf Drilling
plans to raise at least $500 million in an initial
public offering on the London Stock Exchange, joining other
Gulf-based oil services firms seeking a listing on the bourse.
The Dubai-based offshore oil rig operator, 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.
It is targeting a minimum offer size of $500 million, split
between the sale of $250 million of new shares as well as an
unspecified amount of existing shares held by current investors,
according to a regulatory filing in London.
Shelf Drilling aims to list a minimum of a quarter of the
company's shares, a company spokesman said separately.
Private equity firms Castle Harlan, CHAMP and Lime Rock hold
equal stakes in the firm, with management and independent
non-executive directors holding the balance.
Once listed, the company and the three private equity firms
will not be permitted to sell any more shares for 180 days,
while the directors and some senior management will be curtailed
for 360 days, the statement added.
Proceeds from the sale of new shares will be used to repay
part of a $350 million loan facility.
The company plans a dividend payout ratio of between 40 to
60 percent of net income, chief executive David Mullen said in
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 the latest Gulf-based oil services firm to
seek a London listing, drawn by the bourse's international
investor base and lighter regulations than in their home
Gulf Marine Services, an Abu Dhabi-based oil service vessel
operator, began trading in March after raising 165.7 million
pounds ($278.2 million) from its share sale. Its stock is up
around 23.7 percent since listing.
Meanwhile, investors behind Stanford Marine Group hired
banks to float the business in London, sources told Reuters in
Morgan Stanley and Goldman Sachs are joint
coordinators of the Shelf Drilling offering and will underwrite
an unspecified part of the IPO, the statement said.
HSBC, Royal Bank of Canada and
energy-focused boutique investment bank Tudor, Pickering, Holt &
Co. will also act as underwriters to the offering.
($1 = 0.5956 British Pounds)
(Reporting by Ron Bousso in London and Matt Smith in Dubai;
Editing by Jason Neely, David French and Mark Potter)