Linc Energy

Linc Energy: launched its IPO yday with the stock priced at $1.20 per share. Its de-listing from the ASX will coincide with the SGX listing next Wed at 2pm. Linc Energy expects to raise net proceeds of ~$47.9m through the sale of 47.85m shares. Investors, including institutions, have been allocated 47.35 million shares with 500,000 shares available to the public. The firm has a global portfolio of oil, gas and coal assets in areas including the United States' Gulf Coast region and Wyoming. It had a market cap of A$520.5m ($595m) as at Nov 15 on the ASX. Post the IPO in S’pore, its mkt cap will vault to $685m. The investment arm of Kuala Lumpur-listed Genting is a strategic investor in Linc Energy. Genting has been involved in oil and gas exploration and production through its Genting Oil & Gas unit since 1996. Linc Energy has given Genting the option to subscribe for up to 10.75m shares at the offer price during a six-month period from the listing date. The company plans to use the IPO's net proceeds in various ways. ~$18.8m will be used for the conventional oil and gas business, which includes developing the Umiat field in Alaska. It has earmarked ~$23.5m for its clean energy business, which includes work on underground coal gasification (UCG) projects. The balance will be used to fund working capital and other corporate uses. Linc Energy has 475 employees around the world and has invested ~A$210m in developing its UCG technology in the past nine years. Its gross profit more than doubled to A$65m for FYJun13.