NB Private Equity has announced a 26 cent uplift to its NAV as a result of the initial public offering (IPO) of its portfolio company Extraction Oil & Gas Inc (NASDAQ: XOG) which occurred on 11 October 2016.
Extraction is a U.S. based energy company focused on the exploration and production of oil and gas reserves in the Rocky Mountains. NB Private Equity initially invested in Extraction in May 2014 and made multiple follow on investments between June 2014 and April 2016. Prior to their initial investment, Extraction had been funded by a sophisticated private equity investor. As of 31 August 2016, Extraction was the fund’s largest equity investment by fair value, being held at a total valuation of $18.8 million. At the IPO price of $19 per share (above the estimated IPO price range of $15 – $18), NB Private Equity’s position was valued at approximately $31.5 million.
The valuation increase in this position will result in an uplift of $0.26 per share to NBPE’s August monthly portfolio fair value. The fund did not sell any shares as part of the initial public offering. On 12 October 2016, the closing share price of Extraction was $21.85 per share.
In NB Private Equity’s 30 September 2016 monthly report, which will be issued in the coming days, the IPO price for Extraction will be used to reflect its fair value as of 30 September 2016.
NBPE : NB Private Equity benefits from Extraction Oil & Gas IPO