Ophir Energy offers shares

LONDON: Oil and Gas Company Ophir Energy has set a price range of 250-280 pence per share for its London market debut next month, sources close to the deal said on Thursday.

Ophir, which operates in partnership with British gas company BG Group off the coast of Tanzania and also has assets in Madagascar and Somalia, aims to raise $375 million from the listing, one of the sources said.

The company, backed by steel magnate Lakshmi Mittal, said earlier this month the new funds would be used to finance further exploration drilling.

Ophir, expected to be valued at more than $1 billion after the float, plans to raise funds from the sale of new shares. Existing shareholders are not intending to reduce their stakes.

The offering, due to be completed in the first week of July, will also include a 10 percent over-allotment option.

Credit Suisse is running the listing, with J.P. Morgan and RBC Capital also acting as book-runners.

Ophir declined to comment.

Copyright Reuters, 2011