Cardinal Energy Said to Seek C$250 Million in IPORebecca Penty and Doug Alexander
Cardinal Energy Ltd., a producer of oil in Alberta, is seeking to raise as much as C$250 million ($238 million) by selling shares in an initial public offering, according to two people familiar with the plans.
The Calgary-based company plans to make a regulatory filing next week for the sale of shares for C$10 to C$10.50 each, paying a dividend yield of about 6.5 percent, said one person. The people asked not to be identified as the plans are private.
The sale, being led by banks including Canadian Imperial Bank of Commerce and Royal Bank of Canada, would be the biggest energy IPO this year since Oryx Petroleum Corp., the Calgary-based explorer of oil in Africa, raised C$250.5 million in May.
Cardinal, led by Chairman and Chief Executive Officer Scott Ratushny, will produce 5,500 to 6,000 equivalent barrels of crude a day from Alberta wells after it closes a purchase of assets from Penn West Petroleum Ltd. this year, said one of the people. Ratushny is the former CEO of Midway Energy Ltd., which Whitecap Resources Inc. acquired last year.
Ratushny didn’t immediately return a phone call seeking comment on the IPO today. Gillian McArdle, a spokeswoman at RBC, and Tom Wallis, a spokesman at CIBC, and Clayton Paradis, a spokesman for Calgary-based Penn West, declined to comment.