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Environment|Gas|Oil And Gas
Environment|Gas|Oil And Gas
environment|gas|oil-and-gas

Oil Search raises A$80m in entitlement offer

1st May 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Oil and gas major Oil Search has completed the retail component of it’s A$400-million entitlement offer, raising an initial A$80-million.

Oil Search last month announced plans for a A$1.1-billion raising, consisting of underwritten institutional placement to raise an initial A$760-million, and an accelerated non-renounceable entitlement offer to raise a further A$400-million, at a ratio of one new share for every eight shares held.

The retail component of the entitlement offer closed on April 27, with some 38-million shares to be issued now at a price of A$2.10 each to raise approximately A$80-million.

Oil Search told shareholders on Friday that the retail entitlement offer was strongly supported by eligible retail shareholders, with valid applications received totaling some A$39.4-million, implying a take-up rate of around 49%.

Applications under the oversubscription facility totaled a further A$40.1-million, resulting in the total applications for the retail entitlement offer reaching some A$79.5-million. The shortfall of A$0.5-million under the retail entitlement offer will be allotted to the sub-underwriters of the retail entitlement offer.

The funds raised will ensure that Oil Search retains liquidity during the low oil price environment.

Edited by Creamer Media Reporter

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