October 31 (Renewables Now) - AltaGas Canada Inc (TSE:ACI) last week completed an initial public offering (IPO) on the Toronto Stock Exchange (TSX), raising CAD 239 million (USD 182m/EUR 16m) gross before over-allotments.
The company is a unit of AltaGas Ltd (TSE:ALA), holding the latter’s Canadian utilities business and certain renewable power assets in Canada, like the 102-MW Bear Mountain wind park in Dawson Creek, British Columbia. It sold 16.5 million common shares at CAD 14.5 apiece, which is below the range of CAD 15.5-CAD 18 announced by the parent early in October.
The IPO was jointly led by RBC Capital Markets, TD Securities Inc and JP Morgan Securities Canada Inc. The underwriters have been granted an over-allotment option of 2.475 million shares at the offering price, exercisable up to 30 days after closing of the IPO.
AltaGas said its total cash proceeds from the IPO would be around CAD 874 million, including the amount raised from the sale of stock and CAD 635 million in debt. Its stake in ACI has been reduced to 45%, and it could further decline to 36.7% if the over-allotment option is exercised in full, bringing additional proceeds.
With the help of this IPO, AltaGas exceeded its CAD-2-billion target for asset monetisations, reaching CAD 2.5 billion. The proceeds will help it repay and retire its bridge facility in the final quarter of 2018.
(CAD 1 = USD 0.76/EUR 0.67)