A swift stock-market listing for Aberdeen-based oil and gas firm Fairfield Energy seemed unlikely last night with insiders signalling a failed attempt to sufficiently woo investors.
Bosses at Fairfield had hoped the firm’s shares could start trading unconditionally early next week.
The uncertain global economy looks to have conspired against the firm, which is expected to make an announcement about its initial public offering (IPO) today.
Last night, the signs were pointing to the company having to ditch its flotation plans altogether or at least put them on hold until market conditions improve.
Fairfield said last month it planned to raise £305-£340million from a flotation but did not reveal what percentage of the company would be sold.
It was reported, however, that 25-50% would be floated and the firm would subsequently be valued at £675million-plus – putting it among the 10 largest independent UK oil and gas operators.
Fairfield Energy was believed to be looking for last- minute orders at the bottom of the 220-420p range to cover its IPO. With the book still not completely covered by yesterday morning, bookrunners were reportedly resigned to a 220p final price if the deal succeeded. Fairfield, founded in 2005 and controlled by private equity firms led by Warburg Pincus, launched the IPO on July 5.
Joint global co-ordinators Goldman Sachs and Credit Suisse pitched the investment opportunity on a roadshow that focused on London, Scotland, the US and selected locations in Europe.
The offer has coincided with weak equity markets and a flagging oil price. Fairfield said when it announced its intention to float, most of the proceeds from the IPO would be used to boost production from oil fields acquired in 2008 from Shell and other redevelopment projects.
About a fifth of the proceeds were to be used to pursue acquisitions as well as for exploration and appraisal.
Fairfield, which employs 50 staff, was established to focus on the UK North Sea with a strategy of acquiring and developing mature producing assets with significant upside potential and development and re-development assets in need of technical focus and capital. Daily production of 4,600 barrels of oil equivalent (boe) in 2009 is forecast to grow to 34,400boe by 2014.