Petrofac IPO success for 3i

3i originally invested £22m for a 16.2% stake in May 2002. Given the strong market appetite of the offering, 3i has sold its entire stake in Petrofac. 3i’s proceeds represent a money multiple of 5.3 times on its investment and an IRR of 67%.

3i’s funding was used to reinforce the balance sheet during a period of rapid growth and to help Petrofac transform itself from an Engineering Procurement Construction contractor into a total integrated facilities management solutions provider.

In addition to providing funding, 3i introduced Michael Press as an independent non-executive director and Keith Roberts, the eventual CFO, to the business. 3i also identified training business RGIT Montrose, which was ultimately bought by Petrofac in February 2004, as an acquisition target.

The Petrofac board together with 3i decided the time was right for Petrofac to seek an IPO in order to provide liquidity for the existing shareholders, which includes around 500 employees, and provides the means to incentivise a wider employee group.

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