HopgoodGanim advises Armour Energy on $75 million IPO

27 April 2012

HopgoodGanim has advised mining company Armour Energy on its securing of $75 million for its initial shale gas exploration in the McArthur Basin.

One of the largest petroleum initial public offerings in recent years, the IPO led to Armour being admitted to the ASX, hitting the boards at 11:00am EST on Thursday 26 April 2012. The company has received strong support from institutional investors with JP Morgan, HSBC, UBS Wealth Management and Merrill Lynch amongst them. The IPO included the issue of 150,000,000 shares at $0.50.

According to partner Brian Moller, who led the team from HopgoodGanim advising on the IPO transaction, the promising investor take-up in Queensland demonstrates a level of confidence in the mining and resources industry which continues to show strength.

"The $75 million raised in this dire economic climate is a testament to the efforts of those involved - in particular, Armour Energy's own team and its managers, Bizzell Capital Partners and RBS Morgans and underwriter, Samuel Holdings," he said.

"Given our longstanding relationships within this sector and our considerable experience in the resources and energy industry, we have been able to offer start-up exploration companies the full spectrum of legal expertise needed to develop and grow their operations."

Major American hedge fund manager Och-Ziff Capital Management Group, which had provided $4 million in seed capital and committed to subscribing for $7.5 million of Armour's shares in the IPO, also holds a substantial 6.28 percent stake in the company, while former parent company DGR Global (ASX: DGR) still retains a 25.02 percent interest.

Together, the top 20 shareholders own 60.13 percent of the company's issued capital, while shareholders with more than 100,000 shares account for 86.46 percent.

HopgoodGanim has advised Armour Energy, which specialises in shale gas exploration, since it was spun off from DGR Global (formerly D'Aguilar Gold). The team advising Armour Energy on this transaction included special counsel Peter Burge, solicitor Karyn Silcock and specialist advisor Josh Doig.

This deal represents the latest high profile listing for HopgoodGanim, who ranked first in the Australasian Thomson Reuters Capital Markets Review for Equity Deals (by number of deals) in 2011 and last month ranked third in the Bloomberg Equity and IPOs league table for Australia and New Zealand.

Esther Cohen, Senior Communications Advisor
Tel: 07 3024 0192