Yuma IPO to raise as much as $150 million

The Texas oil explorer and producer wants to list its shares on the ASX by December.

Yuma Energy Inc, the closely held Texas oil explorer and producer, plans to raise between $100 million and $150 million in an initial public offering.

The December IPO will consist of a sale of new shares and old shares held by existing shareholders, chief among them being Yuma’s founder Sam Banks, who established the Houston-based company 30 years ago and has a 64 per cent stake.

No financial details for Yuma are currently available.

With a market value after its IPO of between $250 million and $300 million, Banks decided to list his company in Australia where he says it has more potential to draw investor interest than in the US, where there is a plethora of larger oil and gas companies that win fund manager attention.

Analysts are expected to visit fund managers from Thursday for about a week, armed with details of Yuma’s business and financial performance. The analysts are expected to gather feedback from institutional investors before a management road show on November 11.

A book build is scheduled for the third week of November. Yuma’s shares are expected to be listed on the ASX in the second week of December. Deutsche Bank AG is the sole lead manager of the IPO.

Yuma currently produces about 2,000 barrels of oil a day, mostly in the southeast region of the US. The company is using the funds from the IPO to drill between existing oil wells in an area known as Austin Chalk, a region of oil fields that are located predominately in the state of Louisiana.

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