Breakingviews - UK energy IPOs get a vote of minimal confidence

, has a newly minted equity value of roughly $2.9 billion, and $1.4 billion of net debt. The need to cut leverage explains why it chose to list at such an inauspicious time.

One bright spot is that Ithaca’s planned investments will allow it to offset a big chunk of the bill from Britain’s Energy Profits Levy, which takes the sector’s overall tax rate to 65%. But Prime Minister Rishi Sunak will almost certainly make the EPL more onerous. And Ithaca might have to rethink key growth projects, like oilfieldThose risks arguably explain why Ithaca priced at the very bottom of its original range.

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Ithaca Energy's London IPO priced at bottom of rangeNorth Sea oil and gas producer Ithaca Energy's planned initial public offering (IPO) in London is set to be priced at the bottom of the range at 250 pence per share, a bookrunner on the deal said on Tuesday.
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