MEG Energy Said to Seek C$1.25 Billion in Canadian Public Offering in July

MEG Energy Corp., a Canadian oil- sands developer partly owned by China’s CNOOC Ltd., may raise as much as C$1.25 billion ($1.22 billion) in an initial public offering, according to three people familiar with the sale.

MEG is seeking to raise between C$1 billion and C$1.25 billion in the second-largest IPO this year in Canada, after a C$1.35 billion offering from Athabasca Oil Sands Corp. in April.

MEG Energy, with 840 square miles (2,175 square kilometers) of oil-sand leases, is raising money to fund its project at Christina Lake, which has produced oil since 2008, according to a filing yesterday.

The Calgary-based company is owned by Warburg Pincus LLC, a New York-based investment firm, which has about 26 percent of the firm, while CNOOC, China’s largest offshore energy producer, holds a 17 percent stake. MEG has raised more than C$2.3 billion of equity from private investors since 2007, the company said.

Credit Suisse Securities Canada is leading a group of banks including BMO Nesbitt Burns, Barclays Capital Canada and Morgan Stanley Canada for the sale. MEG may be priced next month, people familiar said.

Companies have sold $2.85 billion in stock through IPOs in Canada this year, 57 percent more than the $1.82 billion raised in all of 2009, according to Bloomberg data.

MEG Chief Financial Officer Dale Hohm declined to comment on the details of the offering.

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net

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