Linc Energy Ltd. (LNC), the Australian company studying a gas-to-liquids venture in Russia with billionaire Roman Abramovich, said it plans to raise money selling shares in a move to Singapore’s stock exchange and flagged its intention to buy coal assets.
The company will seek shareholder approval next month to drop its listing in Sydney and request regulatory permission to trade in Singapore in a bid to attract investors and boost its value, Brisbane-based Linc said today in a statement. The company said it will keep its headquarters in Australia.
Shares of Linc fell 11 percent to A$1.2575 in Sydney, the most in more than three months, paring its gain for 2013 to 7.5 percent. The S&P/ASX 200 Index has risen 12 percent this year. Linc then halted its shares pending the company reaching a deal to acquire coal-mining assets in Australia’s Queensland state, it said in a separate statement.
The company, which is in talks with potential “cornerstone” investors as part of the proposed Singapore listing, wants to tap rising demand for energy shares, Chief Executive Officer Peter Bond told reporters today in Sydney. Linc reached a deal earlier this year with Abramovich, the owner of Chelsea Football Club, and hired Barclays Plc to help find a partner to develop shale oil prospects in central Australia.
“Singapore is becoming an energy hub of Asia,” Bond said. “They are starved of energy-company opportunity.”
Listing on the Singapore exchange, “will help unlock the value” of the company’s oil, gas and coal assets, Linc said. “The company believes that the SGX is an ideal trading platform to broaden its investor base and improve access to international oil and gas and energy investors.”
Linc hasn’t decided how much money it intends to raise in a share sale, Bond said. The company is in talks with two or three possible “cornerstone” investors, he said.
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