Italy’s Eni to list Norway Unit Vaar Energi in Oslo IPO

Italian energy group, Eni, and Norwegian private equity firm, HitecVision,  on Monday said they plan to list their Vaar Energi Oil and Gas joint venture in Oslo.

The Initial Public Offering (IPO), which has been discussed for several months would take Vaar public on Euronext’s Norwegian stock market.

Sources with knowledge of the plans have previously estimated a valuation of between $10 billion and $15 billion for Vaar Energi, which would make it one of the largest new stock market entrants in Oslo of all time.

“The IPO is expected to consist of a sale of existing shares by Vår Energi’s existing shareholders, Eni and HitecVision, who currently own 69.85% and 30.15%, respectively, of Vaar Energi’s outstanding shares,” the firms said in a statement.

Petroleum sector IPOs have been a tough sell in recent years, with high-profile companies including Wintershall DEA and Neptune Energy repeatedly delaying listings. But oil and gas prices have surged in recent months, reviving investor appetite.

Eni – which is stepping up its plans to spin off parts of its business to raise the cash needed to help fund its transition away from oil – and HitecVision said in October they were undertaking a strategic review of Vaar, which included a possible listing.

Vaar produces around 247,000 barrels of oil equivalent a day and plans to increase this to around 350,000 barrels a day by 2025, the company said.