Tuesday August 21,2012 : PLAYTECH OWNER IN NEW I.P.O.
Offshore oil is another of Israeli businessman's enterprises
The main shareholder in the publicly listed online gambling group Playtech plc, Israeli businessman Teddy Sagi, is on the IPO trail again, this time seeking a listing for another of his enterprises, oil exploration firm Genesis Energy (Israel) Limited.
The Israeli business publication Globes reports that Sagi's plan is to raise between $90 and 120 million through a listing on the London stock exchange for Genesis, which owns 42.5 percent of the Pelagic licenses.
The company has reportedly hired the services of investment bank Canaccord Genuity to help organise the IPO, scheduled for Q4-2012.
Genesis Energy has not thus far set a valuation for the offering, and if it cannot hold the IPO at the value it wants, it may decide to continue financing its operations from independent resources.
Sagi who owns 40 percent of Genesis Energy through family trusts, founded the company 18 months ago; it owns several offshore oil and natural gas exploration licenses.
Genesis Energy will use proceeds from the IPO to finance its share of two exploratory oil wells at the Pelagic licenses over the next 12 months.
Globes reports that Genesis Energy's partners in the Pelagic licenses are companies owned by Beny Steinmetz, which has a 42.5 percent stake, Israel Opportunity Energy Resources LP, with 10 percent, and Norway's AGR Group In., with 5 percent.
Drilling of the first well at the Pelagic licenses is due to begin by the end of 2012, and the licensees have already hired the Homer Ferrington rig, which is currently drilling the Myra 1 well to be followed by the Sarah well, for this purpose. Drilling of the second Pelagic well is due in 2013. The cost of the two deep water wells is $200 million, of which Genesis Energy's share is $85 million.