Argent sold 21.23 million units for C$10 each, with an initial dividend yield of 10.5 percent, according to sale documents dated today. Argent planned to sell 19.1 million to 21.3 million units for C$10 apiece, with a yield between 10 percent and 11 percent, according to July 16 sale documents.
Argent’s sale is the largest IPO of a Canadian-listed company this year and the biggest since Dundee International Real Estate Investment Trust’s offering in July 2011. Argent plans to use the proceeds to buy oil and natural-gas properties in Texas from Denali Oil & Gas Partners LLC.
Argent is the third company to adopt a corporate structure that mimics Canada’s once popular income trusts, which wooed investors with high-yield securities. Argent follows Eagle Energy Trust and Parallel Energy Trust in becoming a foreign asset income trust. The trust will start trading in Toronto this month under the ticker symbol AET-UN.
Chief Executive Officer Brian Prokop declined to comment.
Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Royal Bank of Canada led a group of banks on the offering. The banks have the option to buy an additional 15 percent after the deal closes.
Canadian companies have raised $1 billion this year in initial stock sales, the slowest since 2008. This year’s total includes the $579 million IPO of Calgary-based Sunshine Oilsands Ltd., which listed in Hong Kong.
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