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Source Rock Royalties Files for Rare Canadian Small-Cap Oil IPO

  • CN Rail’s investment arm owns 26% of Source Rock’s shares
  • First Canadian oil and gas IPO since Topaz Energy in 2020

Source Rock Royalties Ltd., an energy royalties firm backed by Canadian National Railway Co.’s investment division, aims to be the country’s first oil company to complete an initial public offering since Topaz Energy Corp. raised C$230 million ($184 million) in 2020.

In what would be a rare IPO for a junior Canadian energy company, Source Rock is looking to raise a more modest C$10 million, according to a preliminary prospectus filed to the Canadian Securities Administrators on Jan. 10. PI Financial Corp. and Acumen Capital Finance Partners Ltd. are the lead underwriters on the deal, along with Haywood Securities Inc., Canaccord Genuity Corp. and ATB Capital Markets. The prospectus didn’t indicate the timing for the transaction.