* Okea IPO raises 315 mln crowns
* Below initially planned due to weaker oil price
* Had to lower IPO price to 21 crowns/share from 25-33crowns
By Nerijus Adomaitis
OSLO, June 17 (Reuters) - Norwegian oil firm Okea has raised315 million crowns ($36 million) in an initial public offering,the company said on Monday, less than half of what it hadinitially planned due to a fall in the oil price.
Europe's oil and gas sector has built up a crowded pipelinefor stock market flotations but investors are cautious given abumpy recovery following the 2014 downturn and uncertainty overlong-term oil demand as the world transitions to cleanerenergy.
Okea had to extend its bookbuilding period for a week andlower its IPO price to 21 crowns per share, putting its marketcapitalisation at 2.1 billion crowns, from an initial pricerange of 25-33 crowns per share.
It has also issued fewer new shares as its mainshareholders, Thailand's Bangchak Corporation andprivate equity firm Seacrest Capital, have decided to keep allof their stakes.
"When we launched the (IPO) campaign, the oil price fell by15% in a week. The market conditions were really terrible, andthat's why we we've decided to scale down the offering," Okea'sco-founder and Chief Executive Erik Haugane told Reuters.
The company announced initial IPO terms on May 24,announcing plans to raise gross proceeds of 650 million crownsto 858 million crowns to support its growth plans.
Okea, which co-founders include former Norwegian oil andenergy minister Ola Borten Moe, acquired Shell's stakesin Norway's Draugen and Gjoea fields for 4.5 billion crowns lastyear.
It also holds a stake in Repsol's Yme field,expected to start production next year.
"We are fully financed for ongoing projects... The IPO'smain purpose was to enable us to take part in new deals,"Haugane said, without elaborating.
Haugane said the oil industry could cope with oil pricesbetween $60 and $70 a barrel, but if they dropped below $60,many projects could be halted.
Okea's shares will start trading on Oslo's main exchange onTuesday, with public investors expected to hold about 30% of itsshares.($1 = 8.7197 Norwegian crowns)(Reporting by Nerijus Adomaitis, editing by EmeliaSithole-Matarise)
