abce certificate
Tuesday, 02 December, 2008, 02:20 GMT | more >>

Sandridge listing raised $746.2m



By Upstream staff 

Oklahoma City-based SandRidge Energy raised $746.2 million today with an initial public offering that priced above a forecast range.

The 28.7 million share offering, increased in size from 26 million shares, priced at $26, compared with a forecast range of $22 to $24, according to a company statement.

Based on its offering price, the oil and natural gas producer has an initial market capitalization of about $3.5 billion, Reuters reported.

The company plans to use proceeds from its offering, which floated about 39% of the company, to pay down debt.

Chief executive Tom Ward, who already held about 34% of the company before the offering through various entities including family trusts, said he will buy a further 4.2 million shares at the offering price, according to the company's statement.

SandRidge is active in exploration in the West Texas Overthrust, where it has tripled its acreage since last year, according to its registration statement with the US Securities and Exchange Commission.

Its foothold in the area helped it win investor interest, according to one analyst.

"It is a very hot area, and they (SandRidge) have very large acreage," said Scott Sweet, managing director of research firm IPOboutique.com.

SandRidge said it expects its shares to trade on the New York Stock Exchange under symbol "SD" tomorrow.


Tuesday, 06 November, 2007, 01:34 GMT  | last updated: Tuesday, 06 November, 2007, 01:34 GMT

e-mail this article to a colleague


to email:  from:
comments: