Ithaca Energy (Ithaca) has announced plans for a London listing, gauging investor appetite for oil and gas companies amid soaring energy prices and an increased focus on supply security.
The listing also raises hopes in a fourth quarter recovery for a stock market weighed down by the UK’s dismal economic outlook.
It is reportedly aiming to attract over £400m investment, and that the cash raised through the float would allow it to become a “key player in providing energy security to the UK.”
This follows Russia’s continued squeeze on gas flows, which drove wholesale costs to all-time highs this summer.
Gas represented 35 per cent of Ithaca’s production over the first nine months of the year.
Ithaca previously listed in Toronto and London before was acquired by Tel Aviv-listed Delek in 2017.
As part of the listing, Delek will cut its stake in Ithaca but remain as the primary shareholder.
In recent years, the company has engaged in a flurry of merger and acquisition activity.
This includes buying assets in the North Sea to form one of the country’s largest independent oil and gas groups.
Its acquisitions include a $2bn buyout of Chevron’s North Sea operations in 2019, and more recently, a $1.5bn deal for Siccar Point Energy.
The energy firm has revealed it has proven or probable reserves of 244m barrels of oil equivalent, as of June this year.
Ithaca also confirmed it has firm expectations to pay a dividend of £356m in 2023, and £374m million in 2024.