Another IPO for 3i’s oil, gas and power team

3i made US$11.2m on the IPO of Salamander Energy on the London Stock Exchange. The private equity firm investment US$22.6m for a 15% stake in September 2005 and during the IPO the company redeemed US$11.2m in preference shares but it continues to hold 100% of its equity. Salamander Energy is an oil and gas exploration and production company focused on South East Asia. 3i’s original funding was used to build a balanced portfolio of production and exploration assets in the SE Asia region, including producing oil and gas properties in Indonesia and Thailand, and some exciting further development and exploration properties. The timing of the IPO coincides with first gas production from one of Salamander’s key assets – Phu Horm in NE Thailand. The listing gave the company a market capitalisation of US$405m and raised US$200m in assets.

3i’s investment in Salamander energy is its second E&P investment in the region, and follows its US$15m investment in Singapore-based Pearl Energy, an independent exploration and production business with a portfolio of oil and gas interests across Indonesia, Thailand and the Philippines, in August 2004. Pearl was listed on the Singapore Stock Exchange in 2005, and subsequently sold to Aabar petroleum earlier this year. The Salamander IPO follows a host of other deals by 3i’s Oil, Gas and Power team, including the IPO of Revus Energy on the Oslo Stock Exchange, the IPO of Petrofac on the LSE, and the sale of CH4 Energy to Venture Production.