Shelf Drilling launching £300m London flotation

 
Suzie Neuwirth
DUBAI-BASED oil rig contractor Shelf Drilling yesterday unveiled its plans to float on the London Stock Exchange, to sell shares worth at least $500m (£297m).

The firm, which provides offshore contract drilling services to oil and gas customers, intends to raise $250m from the issue of new shares, while an unspecified amount of shares held by existing investors will also be sold.

The net proceeds from the issuance of new shares will be used to repay a portion of a $350m loan.

“Becoming a public company will further enable us to invest in the drilling services our customers seek and build sustainable, profitable growth in the world’s most prolific hydrocarbon-bearing shallow water basins,” said chief executive and industry veteran David Mullen.

The firm’s chairman, Sir Richard Olver, previously chaired BAE Systems and was a director of oil major BP.

Shelf posted adjusted revenues of $1.2bn last year and adjusted core earnings of $468m.

BEHIND THE DEAL
LIBERUM | CLAYTON BUSH

1 Clayton Bush is on the investment banking team and was the lead banker on Sirius Minerals’ £43m capital raise in March.

2 He joined Liberum from Canaccord Adams, where he worked in the corporate finance department, spending time on IPOs, secondary financings, acquisitions and disposals.

3 Bush is a qualified chartered accountant and a graduate of the London School of Economics. He’s also drawn England and Spain in the Liberum World Cup sweepstakes.

Also advising...

Peter Tracey is another key member of the Liberum team. Also advising Shelf Drilling is Morgan Stanley, led by Andrew Foster and Shreyas Bordia; Goldman Sachs, headed up by Christopher Pilot and Lyle Schwartz; HSBC, led by Laura Trimble and Nick Donald; RBC, headed up by Tim Chapman and Darrell Uden; and Tudor, Pickering, Holt & Co, headed up by David Cunningham and John Kennedy.

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