Kimbell Royalty Partners LP unveiled plans for the launch of a corporate-sponsored special purpose acquisition company (SPAC) on July 29.
The SPAC—named Kimbell Tiger Acquisition Corp.—will target the energy and natural resources space in North America. However, Kimbell noted in a release it “may pursue a business combination in any industry.”
Kimbell Royalty Partners is a Fort Worth, Texas-based owner of mineral and royalty interests in every major onshore basin in the continental U.S. The company’s portfolio currently includes over 13 million gross acres in 28 states, including ownership in more than 41,000 wells in the Permian Basin.
On July 29, Kimbell said it had filed for the SPAC’s IPO with the U.S. Securities and Exchange Commission. The proposed public offering is expected to have a base offering size of $200 million, or up to $230 million if the underwriters' over-allotment option is exercised in full.
Under the terms of the proposed offering, the sponsor of the SPAC, which is controlled by Kimbell, would own 20% of Kimbell Tiger’s issued and outstanding common stock upon the consummation of the offering.
The units of Kimbell Tiger are expected to trade on the New York Stock Exchange with its Class A common stock to be listed under the ticker symbol “TGR.”
UBS Investment Bank is sole book-running manager for the proposed offering. Tudor, Pickering, Holt & Co. is acting as capital markets adviser in connection with the IPO.
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