Energy investor that bailed on Britain IPOs for $230 million
Britain is losing out as a result of its changeable energy policy. That’s the main takeaway from Samos Energy’s recent closing of a $230 million initial public offering.
On July 13, Samos Energy Acquisition Corporation announced the conclusion of its IPO of 23 million units, sold at $10 each to raise a total of $230 million. This number included an extra 3 million units that were bought due to high demand.
The IPO comes after the company shifted its attention from the UK to Africa and South America, when co-founder Jacques Tohme called out the problems on the North Sea that influenced his decision.
“The UK Treasury has become very unstable and lacks engagement with the industry,” Tohme said in 2023.
Tohme also noted a loss of confidence in Britain following its Energy Profits Levy on oil and gas enacted in 2022, which created a windfall tax, and a noticeable disinterest from the UK Treasury. Other North Sea-focused companies followed Samos’s example, shifting away from the UK or selling assets due to the unreliable framework.
President Trump has been outspoken about North Sea oil, commenting on the lost opportunity when sharing his thoughts on incoming Prime Minister Andy Burnham. Trump criticized Burnham’s “very liberal” policies, specifically the likelihood he wouldn’t open the North Sea for further drilling, which the President says he has been “begged” to do by oil companies.
While reports in the UK have gone back and forth on Burnham’s drilling stance, it is clear President Trump would support the new PM if he decided to “drill, baby, drill.”
“The People of Aberdeen, in Scotland, are dancing in the streets because the new Prime Minister, Andy Burnham, has stated that he will be opening up, all the way, the invaluable North Sea Oil!” President Trump said in a tweet on July 19. “It is one of the Greatest Sources of quality Oil on Earth, has hundreds of years of Capacity left, with much not even found yet, and will make the United Kingdom, from a Poverty Stricken Disaster, to one of the Richest Countries anywhere in the World!”
Each investor in Samos got one share of the Class A stock, as well as a “warrant” that allows investors to buy an additional piece of stock at a discounted price if the company succeeds. Samos is currently on the hunt for a target company to acquire and has specified that it is looking for international energy assets, specifically in Africa and South America. The stock is now listed on the New York Stock Exchange.
While Samos looks for a company to buy with their $230 million, Cockburn thinks Britain should reflect on the billions in capital it threw away. Must we throw tea in the harbor again for the tax and treasury to be corrected?
