DART ON TARGET FOR LISTING

Written on the 10 June 2010

DART ON TARGET FOR LISTING

ARROW Energy’s proposed offshoot Dart Energy is on track to start trading on July 20 priced somewhere between $0.60 and $1.60, according to chief financial officer Graham Yerbury (pictured).

Dart Energy would consist of 90 per cent of Arrow International, as well as farm-in rights to Apollo Gas’ New South Wales tenements and shares listed in Australian companies.

Ambiguous perhaps, but Yerbury says he’d be a ‘bandit’ to predict the actual price of a Dart share.

“Given the one for two Arrow shares set-up, it’s looking like it will be between 60 cents and some forecasts are going all the way up to $1.60,” he says.

“With continued volatility in the stock market it’s really hard to predict, but the issue is how many people who own shares in Arrow will want shares in Dart?

“What we’ll probably see is people looking who actually want shares in Dart, but the hedge funds have been more pressed on the Shell acquisition than the demerger.”

Dart will start trading on a deferred settlement basis, while Yerbury says the company will also likely issue a share placement worth between $20 million and $30 million to raise capital.

Dart Energy CEO Simon Potter says the company will be different to other new listings because it is a well-established company with a low-cost business model and resources, holding six offices and employing 80 staff.

“In our portfolio we’ve got opportunities for scale - we’re starting out at the same size that Arrow was in 2007. The company will have the assets, resources and systems that you would expect with a company of that size,” he says.

Arrow Energy CEO Shaun Scott says that regardless of how shareholders vote on the acquisition deal, if they vote for the demerger agreement then Dart will still list as a separate entity.


Latest News

STAFF CHURN BLAMED FOR MCGRATH EARNINGS DOWNGRADE

MCGRATH will fail to meet earnings forecasts after some of its star real estate agents defected to growing Perth firm...

MCBAIN RESIGNS AS BELLAMY'S DIRECTOR WHILE THIRD CLASS ACTION MOVES CLOSER TO SECURING FUNDING

LAURA McBain (pictured) has resigned as a director of Bellamy's Organic (ASX: BAL) today, effective immediatel...

REDBUBBLE TO MISS IPO FORECASTS

REDBUBBLE, the online marketplace for independent artists, will miss a series of forecasts set out in its IPO in its ...

BLUESCOPE CONTINUES STRONG RUN WITH GUIDANCE UPGRADE

BLUESCOPE Steel (ASX: BSL) is trading up 7.51 per cent at $11.16 per share after upgrading its half-year guidance thi...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter