Harbour Energy plc (LSE:HBR) shares dropped 9.4% on Wednesday after a major shareholder carried out a secondary share placing.
Potomac View Investments, L.P., an entity managed by EIG Management Company, sold 60 million ordinary shares in the company through an accelerated bookbuild process. The shares were placed with institutional investors at 255 pence each, representing about 3.8% of Harbour Energy’s issued share capital.
The transaction raised approximately £153m in gross proceeds for the seller. Following completion of the sale, Potomac View Investments’ holding in Harbour Energy will decline to roughly 3.5% of the company’s issued share capital.
The seller has also agreed to a 90-day lock-up period during which it will not sell further shares in Harbour Energy, subject to customary exceptions.
Barclays Bank plc acted as sole global coordinator and sole bookrunner for the transaction. The shares were offered exclusively to institutional investors and were not made available through a public offering.
Large secondary share placings can increase the supply of stock available in the market, which may put downward pressure on share prices. Significant disposals by major shareholders can also influence investor sentiment, as market participants may interpret them as a sign of reduced confidence in the company’s near-term outlook.
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