Monday, November 28, 2016

Ratio unit to raise NIS 100m in TASE IPO - GLOBES

28/11/2016, 12:22
Nitzan Cohen

Delek will buy 17.5% of the offering in Ratio Petroleum, which holds gas and oil exploration permits abroad.
An interesting new collaboration seems to be forming between Leviathan partners Delek and Ratio in Israel's gas and oil exploration industry. Ratio Petroleum, controlled by the Ratio Oil Exploration (1992) LP (TASE:RATI.L) partnership, is to hold a Tel Aviv Stock Exchange (TASE) IPO to raise NIS 100 million in a partnership unit and options issue. The fascinating development in this IPO, other than the relatively barren IPO market on Tel Aviv in the past few years, is the commitment made by Delek Group Ltd. (TASE: DLEKG) to buy 17.5% of the offering and therefore become a significant member of this partnership.
Ratio's two most significant permits are for oil and gas exploration in Guyana, in northeast South America and an oil and gas exploration permit in Malta. A large oil field has recently been discovered in Guyana, and Exxon Mobil has committed to conduct exploration in Ratio's field; in exchange, Exxon will develop the field, if oil or gas deposits are discovered.

According to the prospectus, Delek Group will buy 17.5% of the offering, 20% of the offering will be allocated to the Ratio partnership under the same conditions offered to Delek, 12% will be allocated to executives and service provider and the rest will be offered to the public.

As mentioned, Ratio Petroleum will raise NIS 100 million in bundles including partnership units and options; if options are fully realized, the partnership will raise an additional NIS 100 million. Capital market estimates are that the IPO is expected by the end of the year.

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