Norwegian provider of subsea services and its shareholders have decided to put off the launch of an initial public offering (IPO) of its ordinary shares and its application for listing on Oslo Børs.
Earlier this year , DOF ASA owning 51%, and a fund managed by First Reserve owning 49%, started evaluating a potential IPO with aim to support DOF Subsea’s strategy and growth plans, and secure diverse and long-term shareholder base for the company.
However, since the review started, the general market sentiment for the oil service sector has been volatile, and oil price as well as pricing of oil services stocks has dropped significantly, DOF said on Friday.
Therefore, the shareholders said they have concluded to await an improvement in stock market conditions before initiating an IPO.
DOF Subsea has previously been listed on the Oslo Stock Exchange from November 2005 until December 2008, when DOF ASA and First Reserve took the company private.