Ithaca Energy's London listing will be priced at 250 to 310 pence, giving the North Sea oil and gas producer an implied market value of 2.5 billion to 3.1 billion pounds ($2.87 billion to $3.56 billion), bookrunners said on Wednesday.
Ithaca, which produced about 66,700 barrels of oil equivalent per day (boed) in the first half of the year, is expected to float next week in a rare sign of life in Europe's market for new listings, where activity has plummeted since the outbreak of war between Russia and Ukraine.
Porsche's listing in September ranks as the only other notable initial public offering in 2022 and proceeds from ECM deals in Europe dropped 82% to $8 billion in the third quarter of the year.
Ithaca, owned by Tel Aviv-listed Delek Group, expects to be eligible for inclusion in the FTSE UK indices.
There is renewed interest in the North Sea region due to the energy crisis, with UK recently launching its first oil and gas exploration licensing round since 2019 in an effort to boost domestic production.
The bookrunners said the listing is expected to have a free float of at least 10%, with the first day of trading on November 9. Proceeds of the share sale will be used to pay down Ithaca's debt, with owner Delek looking to cut its stake while remaining a controlling shareholder.
Goldman Sachs GS.N and Morgan Stanley are joint global coordinators on the deal while, Jefferies and Bank of America BAC.N are joint bookrunners, with ING acting as co-lead manager.
($1 = 0.8702 pounds)
(Reuters - Reporting by Huw Jones and Sinead Cruise; editing by Jason Neely and Louise Heavens)