North American Oil Trust plans to raise about C$375 million ($365 million) in an initial public offering this year, according to two people with knowledge of the IPO.
North American Oil Trust will sell units for C$10 each to buy oil properties in North Dakota, the Calgary-based trust said in a Nov. 7 filing with Canadian regulators. The sale would be Canada’s second-biggest IPO this year after Gibson Energy Inc.’s C$500 million offering in June, surpassing the C$342 million initially raised by Parallel Energy Trust in April.
North American Oil Trust was established to buy and develop oil-weighted reserves and production in the U.S. while providing monthly cash payouts to investors, the filing said. The company plans to use the proceeds to buy North Dakota oil properties in the Williston Basin for $400 million, according to the filing. Chief Executive Officer Kelly Nichol declined to comment.
Companies have raised $2.44 billion in initial offerings in Canada this year, less than half the amount from the same period a year ago, according to data compiled by Bloomberg.
TD Securities, RBC Dominion Securities and CIBC World Markets are leading the sale.