Exclusive: Shelf Drilling pulls $500m float plan after investors get cold feet
Oil-rig contractor Shelf Drilling is to pull its plan to float on the London Stock Exchange today, citing insufficient interest to justify proceeding with the sale.
Sources close to the deal yesterday told CityAM the decision was made late last night to cancel the initial public offering, which was set to raise at least $500m (£297m), despite some interest in the shares.
The news marks the latest in a run of failed IPOs, including high-profile companies Fat Face and Wizz Air. Some potential investors are becoming increasingly picky as firms unveil float plans in growing numbers. Recent disappointments Saga and Card Factory, whose shares are both trading below issue price, have also acted as warnings to those who sign the cheques. However, success stories such as retailer B&M continue to tempt investors.
Dubai-based Shelf Drilling was understood to have planned on repaying a portion of a $350m loan with the proceeds from the now-pulled sale.
The company is chaired by Sir Richard Olver, previous chairman of BAE Systems and a former director of oil heavyweight BP.