Brazil Oil IPO Pushed Back

Karoon Gas Australia has pushed back the IPO of its Brazilian unit a week, to November 18 from November 10, the company says. Karoon’s Australian shares were placed on trading halt on Wednesday as it awaited results from a well being drilled by Petrobras, its partner in a Brazilian JV. Bankers on the deal say the company wants to list the Karoon Petroleo e Gas unit after the well results are announced. The deal would raise BRL1.18bn if priced at its BRL1,150 midpoint. Karoon is set to offer 1.03m primary shares, a 31.90% stake, in a range of BRL1,025-BRL1,275. A 15% greenshoe is also available. Karoon plans to use the proceeds to drill in 5 Peruvian and 7 Brazilian blocks. It claims to have a combined unrisked mean estimate of 2.15bn barrels of reserves for both countries. Morgan Stanley is lead coordinator of the deal, with BTG and Credit Suisse as bookrunners.