Cardinal Energy Raises C$225 Million Through Initial Sale
Cardinal Energy Ltd. (0901214D), a producer of oil in Alberta, raised C$225 million ($212 million) in Canada’s largest energy initial public offering in seven months, according to a regulatory filing today.
Cardinal Energy sold 21.4 million shares for C$10.50 each in its IPO, according to the prospectus. The Calgary-based company initially expected to sell 21.4 million to 22.5 million shares for C$10 to C$10.50 each, according to sale documents filed last month.
The energy producer will use the proceeds to help pay for a C$210 million acquisition of oil-and-gas properties in southeast Alberta, according to filings with regulators. Cardinal Energy, which is headed by Chief Executive Officer Scott Ratushny, said it began operations in May 2012 with the goal of building a dividend-paying, oil-focused company.
The sale is led by Royal Bank of Canada and Canadian Imperial Bank of Commerce.
A telephone message left at Cardinal Energy’s general mailbox wasn’t immediately returned.
Oryx Petroleum Corp. raised C$250.5 million from its May 9 sale, this year’s largest Canadian energy IPO. Companies have raised at least $2.84 billion in IPOs in Canada this year, surpassing the $2.66 billion gathered for all of last year, according to data compiled by Bloomberg.
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