CASE STUDY – Carnegie acted as global co-ordinator and joint bookrunner to Alliance Oil in the largest Nordic preference share offering
Alliance Oil Company Ltd is an independent oil and gas company with operations in Russia and Kazakhstan. The company operations include the Khabarovsk refinery, a network of gas stations as well as wholesale terminals located in the Russian Far East and has proven and probable reserves of approximately 760 million barrels of oil.
Carnegie advised the company on the very first Russian international preference share issue, which attracted strong interest from the Swedish and international investor community. As many as 4,500 investors and the Company shareholders were attracted to the offer, with solid demand received from institutional (two thirds) and retail investors (one third). This demand was split roughly 50/50 between Swedish and international investors.
Carnegie had overall responsibility for transaction execution, leading and managing the road show activities and the book building process and initially performed a pre-sounding, with a number of different investors, to anchor the transaction ahead of the launch. This resulted in a 10-12% yield range. The issue price for the new class of preference shares was set at SEK 270 per share.
A total of 5m preference shares will be issued in the share offering, indicating that Carnegie successfully generated demand in excess of USD 200m which stood for a large majority of the demand and allocation and double the initial target of USD 100m.