Nostrum Seeks Premium Listing on the LSE

PUBLISHED: May 20 2014 @ 02:27 | Comments (2) | More info about Kenneth G. Mondero

Nostrum Oil & Gas wants to have a premium listing on the London Stock Exchange and a place at the FTSE index, the Kazakhstan-focused oil and gas producer said on Tuesday.

In a statement, the directors of Nostrum plans to admit a newly established holding company on the LSE’s main market as well as on the Kazakhstan Stock Exchange.

Nostrum, which has global depository receipts listed on the LSE since 2008, reported US$895 million revenue in 2013 with earnings before interests, taxes, depreciation, and amortisation (EBITDA) of US$551 million and 20 percent of net profit dividend policy.

“The move to a premium listing represents a natural evolution as the Group grows and develops its operations,” Nostrum’s official statement said.

“The Directors believe that the premium listing of the Company and FTSE index inclusion will enable the Group to broaden its investor base and increase the liquidity of its securities. It is also anticipated that the premium listing will increase the profile of the Group and increase its exposure to a wider investor community.”

Nostrum operates from four fields on the northwestern border between Kazakhstan and Russsia with production sharing contracts with the Kazakh government for one of its fields valid until 2033.

Frank Monstrey, the Executive Chairman of Nostrum said the proposed listing “follows a period of strong growth at our operations” as well as a “successful six year track record” of its GDR listing.

One Nostrum GDR is priced at US$9.60.

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