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The Offering
Company Overview
Finder Energy Holdings Limited, founded in 2004, is an oil and gas exploration company based in Perth, Western Australia. The company has a significant acreage portfolio in North West Shelf (NWS), a region abundantly rich in hydrocarbons in Australia. Recently, the company has expanded into the UK’s North Sea with exploration permits and licenses for proven oil and gas. The firm holds a renowned position as a successful explorer in the industry with a proven track record of identifying hydrocarbons with the help of large seismic databases and leading geoscience technologies.
Corporate Structure of the Company
Source: IPO Prospectus
Business Model
The business model of Finder Energy Holdings Limited encompasses value creation in the exploration stage of oil and gas assets. The following are the critical aspects of the company's business model:
Key Highlights
Financial Highlights:
Source: IPO Prospectus
Below is an analysis of the main factors which affected the company’s operations and relative financial performance:
Key Management Highlights
Associated Risk (High)
An investment in the IPO of "FDR" is exposed to a variety of risks such as:
Conclusion
Finder Energy Holdings Limited is primarily engaged in the oil & gas exploration business and has no revenues to date. Furthermore, increased exploration and evaluation costs have hampered the firm's profitability and earnings. Additionally, the management plans to reinvest the entire cash flow to expand its business without distributing any dividend to its shareholders in the near to medium term. The business intends to utilize the proceeds from this offering to cover the escalating expenses of drilling, seismic, and geoscience and explore new drilling possibilities for expansion.
Therefore, based on the above rationales, we have assignedthe IPO of Finder Energy Holdings Limited with a “Neutral” rating, which implies that the attractiveness of this IPO appears to be low given the associated risks and the current market scenario and this might only be suitable forinvestors with a high-risk appetite [basis further evaluation].
*Please note that an IPO can be postponed or put on Hold at the discretion of the company or regulatory authority.
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