3i plans sale of Revus shares

Enskilda and First Securities began bookbuilding for the IPO of Revus Energy on June 14. The float is set to raise up to NKr286.8m (US$44.5m) for the company and up to NKr430.8m for selling shareholders, which include private equity firms 3i and Energivekst for the secondary portion.

Revus is a full-cycle oil company with exploration, development and production operations. The company has limited itself to exploration around Norway in the most oil-rich areas of the North Sea. The expectation is that drilling is more likely to be successful in these areas and as a small company it is more economical for Revus to tap small fields than it is for the large oil firms.

The offer will see Revus issue 6.4m–7.4 new shares to raise financing as it expands operations. The secondary portion is variable dependent on where the stock prices within the NKr34–NKr39 price range. The secondary component will be 4.6m–11m shares, although it is expected to be the top end of this range to give the company a free-float of approximately 60%. Pre-money, the price range values the company at NKr920m–NKr1bn. Bookbuilding continues until June 24.

3i has also sold a 25% stake in Newell & Budge, a UK-based IT consultancy and services company, to trade buyer Sopra Group. The listed private equity firm’s money multiple on the investment will be 3.5 times.

3i originally invested in Newell & Budge in 2001 to support Ann Budge’s management buyout from her co-founder, Alison Newell. The 3i exit was led by Mark Kerr, investment director. The original investment was led by Gregor Goodwin, investment director, and Mike Robins, director.