Encana Corp. (NYSE: ECA, TO: ECA.TO) increased the size of its IPO for PrairieSky Royalty Ltd. to as much as C$1.46 billion (US$1.34 billion) in what would be one of the country’s largest IPOs, Bloomberg said May 21.
Encana boosted the number of shares it plans to sell in its royalty unit to 52 million from 32.5 million and the price range to C$26.50 to C$28 per share, according to a statement. Encana initially sought to sell shares for C$23 to C$26.50 apiece to raise C$747.5 million to C$861.3 million, according to April 30 marketing documents.
The IPO is part of a strategy announced in November 2013 by Encana CEO Doug Suttles to turn around Canada’s largest natural gas company by selling assets, focusing on fewer primary regions that produce higher-value oil and gas liquids and paying down debt.
Encana has risen 34% since the day before the Nov. 5 IPO announcement. The gain includes an estimated C$4 per Encana share that investors ascribed to the spinoff as the company unlocks value in the royalty-generating lands, Kyle Preston, an analyst at National Bank Financial in Calgary, said in a May 15 interview.
Toronto-Dominion Bank and Canadian Imperial Bank of Commerce are co-leading a group of banks on the sale.
A final decision on the offering size and price is expected in late May, Encana said May 21.
Recommended Reading
Tech Trends: QYSEA’s Artificially Intelligent Underwater Additions
2024-02-13 - Using their AI underwater image filtering algorithm, the QYSEA AI Diver Tracking allows the FIFISH ROV to identify a diver's movements and conducts real-time automatic analysis.
Subsea Tieback Round-Up, 2026 and Beyond
2024-02-13 - The second in a two-part series, this report on subsea tiebacks looks at some of the projects around the world scheduled to come online in 2026 or later.
Exclusive: Silixa’s Distributed Fiber Optics Solutions for E&Ps
2024-03-19 - Todd Chuckry, business development manager for Silixa, highlights the company's DScover and Carina platforms to help oil and gas operators fully understand their fiber optics treatments from start to finish in this Hart Energy Exclusive.
CERAWeek: AI, Energy Industry Meet at Scary but Exciting Crossroads
2024-03-19 - From optimizing assets to enabling interoperability, digital technology works best through collaboration.
Cyber-informed Engineering Can Fortify OT Security
2024-03-12 - Ransomware is still a top threat in cybersecurity even as hacktivist attacks trend up, and the oil and gas sector must address both to maintain operational security.