Private equity investors in Kosmos Energy, the Texas-based company which is a major partner in Ghana's Jubilee field, are looking to raise over $500 million in an IPO that could come to market as soon as Wednesday. Kosmos is owned by Blackstone Group (BX) and Warburg Pincus.
Kosmos is expected to raise about $510 million by selling 30 million shares at $16-$18 each. The stock would trade on the New York Stock Exchange under the ticker ''KOS.'' Brokers say the offering is oversubscribed, indicating demand is strong for Kosmos shares. Warburg and Blackstone may be capitalizing on the climb in crude oil and a recent spate of private equity-backed IPOs, according to Bloomberg News.
Kosmos has a 23% percent stake in Jubilee, which is equivalent to 60 million barrels of reserves. Anadarko Petroleum (APC) has invested $3.1 billion in Jubliee. About 70,000 barrels per day are currently being pumped from Jubilee, but the companies that are active in the project hope to have that total up to 120,000 by the end of this year.
Exxon Mobil (XOM), the largest U.S. oil company, tried to acquire Kosmos for $4 billion in 2009, but Ghana's government blocked the deal and Exxon threw in the towel on its bid last year. BP (BP) and China's Cnooc (CEO) tried to buy Kosmos in March, but Kosmos rejected the offer.