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Gulf Keystone Petroleum Ltd (GKP)
Gulf Keystone set for FTSE listing
By Julie Fisher | Mon, 24th February 2014 - 10:47
Gulf Keystone Petroleum (GKP) is finally preparing to list on the main market after first announcing the potential move more than three years ago.
Shares in the oil company rose around 4% on Monday as the company announced that it expected its shares to commence trading on the main market and be cancelled on the alternative investment market (AIM) "on or after 24 March".
The UK Listing Authority and the London Stock Exchange will have to approve the move before it can take place. A prospectus will also be issued prior to the admission date.
Gulf Keystone initially proposed the move in December 2010 but has faced many hurdles since, including a court case over its Shaikan oil field in Kurdistan and the need to strengthen its board with new non-executive directors.
"To be three years late on guidance for such a relatively modest but significant corporate action is not good in my opinion," commented Interactive Investor discussion board user 'renardargente'.
"It is good news that it has finally happened but it neither erases their performance to date on this matter nor demonstrates a company that is now operating effectively."
However, other investors were less concerned by the tardiness of the move and more interested in the potential contents of the prospectus.
'MarkMark69' said: "I think this prospectus will make for some fascinating reading especially around production, sales and cash."
The user also questioned whether the move would lead to equity fundraising and thus dilution.