Carlyle Group and Goldman Sachs Group Inc. are asking investors to pay more than $1 billion for a deepwater-oil explorer with no revenue or profits in the industry’s biggest U.S. initial public offering this decade, according to Bloomberg.
Cobalt International Energy Inc., founded in 2005 and controlled by private-equity funds of Carlyle, Goldman Sachs and three other firms, plans to offer 63 million shares at $15 to $17 each, a Nov. 27 filing with the SEC showed. The IPO, scheduled for Dec. 15, may raise as much as $1.1 billion and give buyers a 19 percent stake in the company.
Analyst seem to think it is a roll of the dice as to whether Cobalt will make a significant enough discovery to justify the money that Carlyle and Goldman expect to now be put in the deal.
It priced below range at $13.50 a share.
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