Australia’s Karoon plans $1.04 bln IPO in Brazil

* Karoon to sell up to 1.39 mln new voting shares in IPO

* Move could help unlock value of South America unit

* Sets share price range 1,025-1,275 reais each

SAO PAULO, Oct 27 (BestGrowthStock) – Australian oil and gas
explorer Karoon Gas Ltd (KAR.AX: ) said on Wednesday that it
could raise up to 1.77 billion reais ($1.04 billion) in an
initial public offering of its South American unit in Brazil.

Perth-based Karoon said in a newspaper statement published
in Valor Economico that it could sell 1.03 million voting
shares at a price range of between 1,025 reais and 1,275 reais
each. The offering could be increased by 360,000 new shares,
provided there is demand for the stock.

The move underscores foreign companies’ interest in listing
in a liquid market like Brazil’s, where share offerings will
reach a record this year. Karoon had said in June that an IPO
in Brazil could help it establish a “comparable value with
other South American oil exploration companies.

“Karoon believes that companies with South American
exploration assets, whose shares are listed on overseas
exchanges, achieve far greater value for their assets than that
achieved by Karoon in Australia,” it added at the time.
[ID:nSGE6560KE]

The company has assets in Brazil and Peru. In Brazil,
Karoon has a 100 percent stake in five exploratory blocs in the
Santos Basin and a 20 percent participation in three blocs
controlled by Brazil’s state-controlled oil company Petrobras
(PETR4.SA: ).

Karoon picked Morgan Stanley & Co (MS.N: ) to manage the
transaction as lead underwriter and market maker, according to
the Valor statement. Credit Suisse Group (CSGN.VX: ) and
Brazilian securities firm BTG Pactual [BTG.UL] are
co-managers.

The pricing of the shares will probably be ready by Nov.
10, and the stock will begin trading in Sao Paulo-based Bovespa
stock exchange on Nov. 12.

($1=1.704 reais)
(Reporting by Guillermo Parra-Bernal; Additional reporting by
Alberto Alerigi Jr. in Sao Paulo; Editing by Lisa Von Ahn)

Australia’s Karoon plans $1.04 bln IPO in Brazil