‘A Lot Of Interest’ In Seadrill Brazil IPO
Bermuda’s Seadrill Ltd., the oil-rig operator controlled by international shipping magnate John Fredriksen, expects a “lot of interest” in the initial share offering in its Brazilian unit, the chief financial officer told the Bloomberg financial news network today [Jan.24].
“Brazil is a drilling heartland market and Seadrill wants to grow and become more local,” Esa Ikaeheimonen said. “We believe this is a good time, the story is very strong.”
The company, based in Bermuda, is planning to raise as much as $964 million by selling as many as 64.8 million voting shares in the offering in Seabras Servicos de Petroleo SA, it said in a statement.
Seabras plans to use the proceeds from the offering to make acquisitions and other investments, according to a prospectus on Brazil’s securities regulator website.
The stock, which includes an overallotment, will start trading in Sao Paulo on February 13.
Seabras plans to sell 48 million primary shares, Mr. Ikaeheimonen said.
Seadrill is seeking to expand its Brazilian operations as the industry grows on demand from oil producers such as Petroleo Brasileiro SA.
