CALGARY — Topaz Energy Corp., a subsidiary of Tourmaline Oil Corp., has filed a preliminary prospectus to raise $252.5 million through an initial public offering.
The offering — which will test the market’s appetite for energy investments —is to generate $217.5 million from treasury shares, along with $35 million from a secondary offering of shares held by majority owner Tourmaline, with the shares to be priced at between $13 and $15 each.
Final pricing and closing is expected in the latter part of October.
Calgary-based Topaz was created by Tourmaline in November to hold royalty and energy infrastructure assets that it felt were not being recognized by the market in its share price.
It owns royalty interests on about 920,000 hectares of developed and undeveloped oil and gas lands and non-operated ownership interests in four natural gas processing plants.
The offering is being made through a syndicate of underwriters co-led by Peters & Co. Ltd. and Scotiabank.
“Topaz’s objective is to generate free cash flow growth through indirect oil and gas and infrastructure investment at a relatively low-risk and low cost to the company,” says the preliminary prospectus.
“Topaz seeks to achieve this objective by selectively pursuing strategic business development opportunities with high-quality partners that are accretive to Topaz.”
This report by The Canadian Press was first published Sept. 25, 2020.
Companies in this story: (TSX:TOU)
The Canadian Press