Var Energi Going Public To Enhance Growth

Var Energi Going Public To Enhance Growth
Var Energi will launch an initial public offering of its shares and apply for a listing on the Oslo Stock Exchange.

Oil and gas company focused on the Norwegian Continental Shelf Vår Energi will launch an initial public offering of its shares and apply for a listing on the Oslo Stock Exchange.

The company's current shareholders, Eni and HitecVision, consider the listing to be an important step in the development of Vår Energi.

According to a statement from Monday, the IPO will provide access to the Norwegian and international capital markets and is intended to allow the company to diversify its ownership structure and create a strong long-term shareholder base, including employee engagement.

The shareholders intend to remain active and committed owners following the IPO, with Eni intending to retain a majority stake while preserving equity accounting.

“Vår Energi represents Eni’s more than five decades of engagement on the NCS and our contribution to creating a leading energy company with a clear growth strategy and strong partnerships in a very attractive region. This provides a solid foundation for long-term value creation and shareholder returns, and we look forward to continuing to support Vår Energi as a majority shareholder in this ongoing success story,” Francesco Gattei, Eni CFO, said.

“This is a great milestone for Vår Energi, and the realization of our ambitions when we started building it to become one of the leading E&P companies in Norway.  We are proud of the company’s achievements so far, and I would like to thank both our partners in Eni, Vår Energi’s management, and in particular all employees of Vår Energi,” Tor Espedal, Senior Partner in HitecVision, added.

The IPO is expected to consist of a private placement and public offering to investors in Norway, Sweden, Finland, and Denmark and a private placement to institutional investors outside Norway and the USA.

The IPO is expected to consist of a sale of existing shares by Vår Energi's existing shareholders, Eni and HitecVision, who currently own 69.85 and 30.15 percent of the company.

The IPO is subject to receipt of the relevant approvals from the Oslo Stock Exchange and the Norwegian Financial Supervisory Authority, as well as prevailing equity capital market conditions.

“Our leading NCS position is founded on a unique track record, scale, operational excellence, and strong partnerships. We believe oil and gas will continue to be part of the energy mix for decades to come, and the current gas market developments in Europe confirm our view that a reliable and safe supply of natural gas from Norway to Europe will be crucial,” Torger Rød, the CEO of Vår Energi, stated.

“The NCS will remain one of the most attractive regions for exploration and production globally due to cost competitiveness, a stable regulatory environment, and low emissions. This is reflected in our target of becoming a net-zero producer by 2030 (scope 1 and scope 2). With a robust and diversified portfolio of operations and assets across all parts of the NCS we have set ambitious growth targets. An initial public offering and listing is a natural next step for Vår Energi in realizing our full potential and delivering long-term value creation to a wider group of stakeholders," Rød concluded.

To contact the author, email bojan.lepic@rigzone.com


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