Oil sands firm ups IPO target
Athabasca Oil Sands Corp (AOSC) said on Tuesday it will raise at least CAD 1.35 billion (USD 1.32 billion) in North America's biggest initial public offering so far this year—a clear sign that investor interest in Canadian oil sand assets has rebounded.
Athabasca, which is developing Alberta oil sands projects in partnership with a Chinese state oil company, said it will sell 75 million shares at CAD 18 each through a syndicate of underwriters led by Morgan Stanley Canada.
If an overallotment option is exercised, the value of the offering could top CAD 1.55 billion. The deal is expected to close on April 8, and the shares will be listed on the Toronto Stock Exchange.
Last year, Athabasca sold interests in its projects for CAD 1.9 billion to PetroChina, which will help pay for development.
The company has said its oil sands holdings in northern Alberta could contain as much as 7.1 billion bbl of bitumen. The projects, in the MacKay River and Dover areas, could eventually produce as much as 500,000 b/d, AOSC has said.
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