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Oil slump threatens outlook for AIM listings after bumper 2014 -UHY

Mon, 05th Jan 2015 00:01

* Money raised via AIM IPOs doubles in 2014, highest in 7years

* New energy company listings under threat - accountancyfirm

LONDON, Jan 5 (Reuters) - Slumping oil prices could curb newequity listings on Britain's Alternative Investment Market, where many small oil and gas explorers havetraditionally sought financing, according to AIM-focusedaccountancy firm UHY Hacker Young.

Last year the value of initial public offerings on AIM hitits highest since 2007 at 2.4 billion pounds ($3.71 billion),twice the sum raised in 2013, according to data compiled by UHY,the 9th largest auditor on AIM by number of clients according toAdviser Rankings.

But listings in the energy sector have all but dried upsince June as the oil price has halved, leading oil majors tocut their spending plans and denting the economic appeal ofrenewable energy projects.

Only one oil & gas producer or explorer, Savannah Petroleum, has listed on AIM in the past six months and theyear's total of three is half the 2013 figure.

"There is a risk that the IPO pipeline could slow somewhatas the oil price plunge takes its toll on the oil and gas andrenewable energy companies that have traditionally been servedvery well by the AIM market," Laurence Sacker, a partner at UHY,said.

The energy sector accounts for 121 of the 845 companieslisted on the FTSE AIM index, including industry heavyweightAmerisur Resources, making it the third largest sectorafter materials and information technology, Thomson Reuters datashowed.

Globally, shelved energy IPOs over the past six monthsinclude Dubai's oil-rig contractor Shelf Drilling, which wasplanning to list on the London Stock Exchange,Chesapeake Oilfield Services, a unit of Chesapeake Energy, and Samudra Energy, which owns oil and gas interests inIndonesia and was eyeing a listing in Singapore.

Britain-focused companies could make up for part of the lostIPOs in the energy sector, however, if the country's economicrecovery remains on track, UHY's Sacker said.

Local companies that listed on AIM in the last quarterinclude the Mortgage Advice Bureau, a network ofBritish mortgage brokers, and soft drinks maker Fevertree.

($1 = 0.6477 pounds) (Reporting By Francesco Canepa; Editing by John Stonestreet)

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