Karoon Cancels IPO Registry

Karoon Gas Australia has officially withdrawn the IPO registration for its Brazilian unit. Karoon had marketed a deal last year and was set to price in November, only to postpone indefinitely due to market conditions. Karoon was looking to raise funds to develop 5 Peruvian and 7 Brazilian blocks. BTG, Credit Suisse and Morgan Stanley were managing. Pricing oil deals that are very close to being start-ups has proven tricky, in a year where many new issues have had difficulty. Queiroz Galvao Exploracao e Participacao raised a $1.52bn IPO in February, landing BRL4.00 below the bottom of its target price range at BRL19.00, though it closed Tuesday at BRL20.31. Perenco Petroleo e Gas do Brasil, the Brazilian unit of UK-based oil exploration company Perenco, has filed for an IPO but has yet to launch.