3i makes 5.3x on Petrofac float

Petrofac, a UK based oil and gas facilities services provider, has floated on the London Stock Exchange with a market capitalisation of £742m, enabling shareholder 3i to realise over £120m. 3i holds a 16.2% stake in the business.

Priced initially at 215 pence, the share price rose rapidly on its first day of trading, reaching a high of 245 pence, and earning chief executive Ayman Asfari £55m. Asfari sold eight per cent of his stake in the float, and is left with 22% worth around £182m.

3i Eurofund III acquired its stake in May 2002 for £22m, and the IPO has allowed the firm to achieve a complete exit, generating a multiple of 5.3 and an IRR of 67%.

The money provided by 3i enabled Petrofac to change its business from an engineering procurement construction contractor into a total facilities management solutions provider. 3i also introduced Michael Press as an independent non-executive director, and CFO Keith Roberts to the company.