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Statoil rises on debut
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June 18, 2001: 12:27 p.m. ET
Norwegian oil and giant gets Oslo market welcome, adds pennies in NYSE debut
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LONDON (CNN) - Shares in Statoil, the Norwegian oil and gas company, spurted higher Monday on their debut on Oslo's stock exchange but traded flat on the New York Stock Exchange.
The stock rose 3 crowns to 72 crowns on Monday in early trade. The state-owned oil and gas company and the government priced the shares at 69 Norwegian crowns, valuing Statoil at 151 billion crowns ($16.3 billion).
Norway's government and Statoil sold a total of 383.2 million shares, or 17.5 percent of the company. The shares were priced at the lower end of the indicated price range of 66 to 76 crowns.
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In the United States, the IPO hit a high of $7.50 before falling and closing at its $7.47 IPO price on the Big Board.
Statoil (STO: unchanged at $7.47, Research, Estimates) sold 383.2 million American depositary shares at $7.47, the mid-point of its 7.17-to-$8.25 price range, via lead underwriters Morgan Stanley and UBS Warburg.
Norway-based Statoil ASA, an integrated oil and gas company, was considered the safest IPO this week. The company is the leading producer of crude oil and gas in the Norwegian Continental Shelf. Last year, Statoil had oil reserves of 1.994 million barrels.
Norway's biggest privatisation
In Norway, the government was forced to price the share at the bottom end amid investor concerns that high taxes are pushing up costs compared to its peers. Norway is one of the world's top four oil exporters, pumping some 3.1 million barrels of oil a day.
Statoil hopes the governments' reduced holding will enable it to compete internationally. It plans to sell further stakes as it strikes up deals with overseas partners. The government still owns two-thirds of Statoil.
Statoil sold 188.7 million new shares, raising some 13.4 billion crowns. That will be used to pay back a loan given to the company before its initial public offering.
Meantime, the government raised about 17.3 billion crowns from the sale of 194.5 million new shares, which it plans to transfer to its $46 billion oil fund. The government plans to sell another 2.5 percent of stock if demand warrants it, the company said.
Statoil chief executive Olav Fjell said the share sale was four-times oversubscribed. About 78 percent of stock was sold to international investors, 16 percent to Norwegian institutional investors and the remainder went to Norwegian private investors and Statoil staff. 
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Statoil
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