Perth-based Australis Oil & Gas Ltd. launched an initial public offering (IPO) Wednesday for listing on the Australian Securities Exchange (ASX) to raise around $22.17 million (AUD 30 million).
According to details provided on the Western Australian firm's website, Australis will offer 120 million fully paid ordinary shares at an offer price of $0.18 (AUD 0.25) per share. The IPO will result in the sale of around 35 percent of the company to new public investors, according to a report Wednesday by The West Australian.
Australis was established by Jon Stewart, Ian Lusted and Graham Dowland, formerly key executives of Aurora Oil & Gas Ltd., which is an oil and gas exploration and production company with significant upconventional assets inthe Eagle Ford shale trend in South Texas in the U.S.
The firm currently owns two upstream assets in the U.S. and Portugal. In the U.S., Australis has a 50 percent interest in the appraised unconventional onshore oil weighted Tuscaloosa Marine Shale (TMS), while its sole exploration acreage is located in western Portugal.
Australis Chairman Jon Stewart said the firm had already received commitments for the full $22.17 million (AUD 30 million) following a pre-marketing roadshow on the east coast recently.
"It allows us to be focused on building a high quality share register ... The founders and management and their affiliates invested significantly at formation and through subsequent private capital raisings and intend to remain invested as Australis executes its business strategy," Stewart said, as quoted by The Western Australian.
"Australis was created ... in what we believe are attractive market conditions for our countercyclical investment strategy."
The company intends to take advantage of current conditions in the oil and gas industry to build a high-quality portfolio ready to be developed as oil prices improve. The offer will open July 6, with the stock expected to begin trading July 25.
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