West Perth-based oil and gas explorer and producer Coogee Resources Ltd has withdrawn its IPO after the book build process failed to reach a price the company considered acceptable.
Coogee had aimed to raise $380 million through the issue of between 176 million and 211 million shares at a price ranging from $1.90 to $2.33 each, valuing the company at between $798 million and $979 million.
The IPO was to be coupled with a $313 million debt facility to fund development of the company's flagship Montara oil project in the Australian waters of the Timor Sea.
The float of Coogee Resources, which is currently majority-owned by Coogee Chemicals chairman Gordon Martin, was one of the largest Western Australian floats in recent years.
Its withdrawl today highlights the patchy nature of the stock market, coming soon after Alinta Ltd decided to buy back its under-performing spin-off Alinta Infrastructure Holdings, and follows the discounted $941 million float of heavy equipment supplier Emeco Ltd, which proceeded only after the company cut the price to below its targeted range.
Coogee's scrapping of its IPO came just hours after the company lodged a pro-forma announcement with the ASX, advising that it anticipated its shares would be admitted to trading tomorrow (Friday) morning.
It said that the issue price would be set within the indicative price range.
Coogee Resources CEO Peter Hood said this afternoon the Company's day to day operations would continue as usual.
"The Coogee Resources team will continue to work diligently to progress the Montara Oil Project and our exploration programme," he said.
"We are sorry to have disappointed investors and employees who had applied for shares under the Offer at this time."
The company said all application monies would be refunded as soon as possible.
