DOF Subsea puts off IPO plans
Norwegian subsea services provider DOF Subsea has decided to wait with launching the initial public offering (IPO) after all due to volatile market.
The company’s shareholders, DOF ASA with 51% and a fund managed by First Reserve with 49% ownership, started considering the opportunity for the company to apply for a listing on Oslo Stock Exchange in May.
The company 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.
Come June and the company announced its intention to launch the IPO of its ordinary shares and to apply for a listing on Oslo Stock Exchange, expecting to be admitted to listing and start trading ultimo June 2017.
However, DOF informed on Friday that, 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.
Therefore, despite receiving solid support for the DOF Subsea business case, the shareholders have concluded to await an improvement in stock market conditions before initiating an IPO, the company said.
The shareholders stated that they consider the company’s position to be strong with a substantial pipeline of new contracts starting in 2017.
Offshore Energy Today Staff