DOF Subsea has decided not to press ahead with an IPO, and says the plan will have to wait until the market picks up.
“The general market sentiment for the oil service sector has been volatile, and the oil price as well as pricing of oil services stocks has dropped significantly,” said the company in a statement.
“Despite receiving solid support for the DOF Subsea business case, the shareholders have concluded to await an improvement in stock market conditions before initiating an IPO.”
DOF Subsea confirmed its intention to launch an initial public offering of its ordinary shares and to apply for a listing on Oslo Børs in early June having first discussed the idea in late May.
The company reported revenues of NKr5,099 million (US$605 million) and EBITDA of NKr1,764 million in 2016. It had a firm order backlog of approximately NKr19 billion by year-end 2016.
DOF Subsea said the IPO would “support its strategy and growth plans, and is expected to contribute to a sustained strong, diverse and long-term shareholder base for the company.”
When it first announced the plan in May 2017, it said it was “anticipating market recovery and growth opportunities.”
DOF ASA owns 51 per cent of the company and a fund managed by First Reserve owns 49 per cent. The company was listed on the Oslo Stock Exchange from November 2005 until December 2008.
DOF said it hoped the IPO would “provide flexibility for the company to pursue further organic and strategic growth opportunities” and enhance its competitive position “ahead of an anticipated market recovery.”