Athabasca IPO to raise $1.35B
Calgary-based Athabasca Oil Sands Corp. plans to raise $1.35 billion in its initial public offering of shares, the company announced late Tuesday.
It will offer 75 million shares at $18 each. If necessary to meet demand, it will make available an additional 11.25 million shares, to increase the total capital raised to $1.55 billion.
Athabasca plans two oilsands pilot projects, one of which would produce 35,000 barrels a day when it reaches commercial-scale production near MacKay River, north of Fort McMurray, Alta.
PetroChina, the national Chinese petroleum company, last year invested $1.9 billion to become a partner with Athabasca, with a 60 per cent stake.
The bitumen in the area is too deep to be mined and will be extracted using steam to enable the oil to flow and be pumped to the surface.
It will trade on the TSX under the ticker symbol ATH.
The offering is being led by Morgan Stanley Canada and GMP Securities.
With files from The Canadian Press