The DNO share is traded on the Oslo Stock Exchange (OSE). The share price increased 73% in 2010, providing a solid recovery throughout the year. Share trading liquidity remains strong, as the total number of trades in 2010 reached almost 252 million. No dividend was paid in 2010. Market capitalization as of 31 December 2010 increased to NOK 8.6 billion from NOK 4.6 billion at the end of 2009. DNO enjoys wide analyst coverage and the Company is currently actively followed by 14 securities firms in Oslo and London.
Share capital and shareholder structure
At year-end 2010 the share capital was NOK 237.5 million consisting of 949 856 912 shares with a par value of NOK 0.25. All shares are fully paid. Currently, DNO has approximately 14 000 private and institutional shareholders, where the largest shareholder is RAK Petroleum Public Company Limited, an oil and gas company based in the United Arab Emirates, holding a 30 % ownership interest. International ownership has increased in recent years and currently 65% of the shareholders are based outside of Norway.
Private placement of equity
New equity was raised in November 2010, when 45 million new shares were issued at a subscription price of NOK 8 per share. The private placement was more than 100 % oversubscribed. The proceeds from the private placement will be used for development and appraisal drilling, new license entries and general corporate purposes. The Board of Directors in DNO resolved to waive pre-emptive rights for existing shareholders in the private placement to utilize an opportunity to capitalize the Company under positive capital market conditions, based on an accelerated book building process.
Dividend policy
In its annual dividend proposal, the Board of Directors will, in addition to financial results, take into consideration DNO’s investment plans and financial requirements related to the Company’s license portfolio.