TAIB Bank has completed a private placement of shares worth $15 million in the Manama-based oil company Intoil. The Bahrain-based bank was lead manager for the issue, raising the company’s capital to $32.25 million. It will also act as manager when the company’s shares are listed on the Bahrain stock exchange later in the year.
TAIB raised $5 million from existing shareholders in Intoil, and a further $10 million from its own clients, mainly in the Gulf. Most of the company’s shares are already held by investors in the Gulf and the Middle East, although the company’s main area of activity is in the US , through its Colorado-based subsidiary. The US subsidiary owns and operates oil and gas reserves in 12 states, particularly the Rocky Mountain region, Texas and Oklahoma.
The new capital will be used for the company’s drilling programme and will help the firm acquire new reserves. TAIB will arrange the flotation in Bahrain, which is due to go ahead in mid-1995. The Bahrain listing will be more convenient for the Gulf investors than a US listing, TAIB officials say.