First Reserve-backed KrisEnergy jumps 5% on Singapore debut

The company raised S$270.8 million ($213 million) through its IPO, selling 151.9 million shares at S$1.10 apiece, plus a further 94.1 million shares that were subscribed to by cornerstone investors. The international and Singapore tranches of the public offering were six times subscribed and 22.9 times subscribed, respectively.

"Since the company was founded in 2009, we have made significant strides towards our goal of building KrisEnergy into a sustainable Asian oil company with a diverse multi-asset portfolio, and today marks a major milestone in our continuing efforts," Keith Cameron, KrisEnergy's CEO, said in a statement.

The management team comprises geoscientists, engineers and operations specialists with considerable experience in Southeast Asia's oil and gas sector. Prior to founding KrisEnergy, they created Pearl Energy, an E&P player with a similar remit that won early backing from 3i Group in 2004 and was later sold to Mubadala.

The team has built a portfolio of 14 oil and gas field contract areas in Cambodia, Indonesia, Thailand and Vietnam. Two more acquisitions are in the pipeline, which would see the geographical footprint expand to Bangladesh.

First Reserve provided KrisEnergy with $500 million in start-up capital in 2009, of which approximately $300.9 million has been invested. The equity commitment has now been withdrawn. First Reserve owned 78.9% of the company pre-IPO but its holding has now fallen to 45.2%.

Keppel paid $115 million for 20% of KrisEnergy in July 2012 and last month exercised a call option to take its stake up to 36%. Keppel participated in the cornerstone tranche of the IPO but its stake has still been diluted to 31.4%.

PE interest in Southeast Asian oil and gas is tied to the region's growing importance as an energy hub. Asia is growth long and resources short, and the likes of China, India and Indonesia will account for the bulk of new energy demand in the next 20 years. They are inclined to look for supplies on their doorstep.

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• Topics
• Exits
• Industrials
• Southeast Asia
• energy
• Commodities
• Southeast Asia
• First Reserve Corp
• IPO
• Exit