Cobalt sale: Price lower than expected for initial public offeringOffshore explorer Cobalt International Energy priced shares in its initial public offering below expectations, according to an underwriter.
The Houston-based company sold 63 million shares for $13.50 each, and raised roughly $850.5 million.
It had expected to sell shares for $15 to $17 each, according to a Reuters report.
Cobalt had no revenue as of 30 September, and no proved reserves, but plans to tap into what are some of the hottest geographies in the energy industry.
Cobalt has ownership stakes in deep-water prospects in the Gulf of Mexico and the African countries of Angola and Gabon.
Cobalt said it expects to start commercial production from its Gulf of Mexico properties between 2012 and 2014, and from its African properties between 2014 and 2016.
Cobalt International has development agreements with French giant Total and Angola's state-run Sonangol, and plans to use the IPO's net proceeds to fund its drilling and exploration programme through 2011.
Cobalt was founded in 2005 by a group of oil industry executives and private equity investors.
Its chief executive, Joseph Bryan, had previously been chief operating officer of oil and gas explorer Unocal.
The funds backing the company are affiliated with Goldman Sachs & Company, and private equity firms Riverstone Holdings and The Carlyle Group.
Another oil and gas prospector, Crimson Exploration, is expected to price later this week.
Cobalt's underwriters are led by Credit Suisse and Goldman Sachs & Company.
The underwriters have the option to purchase an additional 9.45 million shares
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