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Norway’s largest oil company, Statoil ASA, says it is hoping to raise up to 4.92 billion Norwegian Kroner (USD 850 million) from the sale of shares in its fuel and retail unit, which also includes Statoil's marine fuels, lubricants and aviation fuel divisions.

Statoil said today that it aims to sell up to 40 percent, or 120 million shares in Statoil Fuel & Retail (SFR).

Commenting on the sale, chief executive Helge Lund said "This transaction provides Statoil Fuel & Retail with a strong platform for further growth and development, taking into account its leadership positions in its key markets, its attractive asset base and its strong brand."

The company supplies marine fuels, lubricants and aviation fuels and includes 2,300 gas stations in eight countries. The business achieved an adjusted profit of 1 billion kroner in the first half of this year, up from 600 million kroner during the corresponding period in 2009.

Statoil said it will be a majority shareholder of Statoil Fuel & Retail at the time of the initial public offering (IPO) and listing.

“The size and time horizon of Statoil’s future ownership in SFR will be tailored to support and develop company value both for SFR and for Statoil ASA,” Statoil said in a statement.

The book building for the IPO is due to commence on October 8 and the shares are expected to be listed on the Oslo Stock Exchange on Oct. 22.

The shares will be offered for sale at a price of 32 to 41 kroner per share, meaning that the IPO is expected to raise between 3.84-4.92 billion kroner excluding the overallotment option of up to 15 percent of the base deal.

Shares offered to the public in Norway are subject to a lower limit of 10,000 kroner and an upper limit of 2.5 million kroner for each investor.

ABG Sundal Collier Norge ASA and Citigroup Global Markets Ltd. are acting as joint global coordinators and, together with BofA Merrill Lynch as joint bookrunners, Nordea Markets is acting as senior lead manager and retail coordinator, while Barclays Capital and Carnegie ASA are acting as co-lead managers. Rothschild and Arctic Securities are acting as financial advisers to Statoil.