Clean fuels co Tidewater Renewables targets USD 120m from IPO

The Prince George refinery in British Columbia. Source: Tidewater Midstream & Infrastructure Ltd

August 13 (Renewables Now) - Tidewater Renewables Ltd, a recently-formed unit of Tidewater Midstream & Infrastructure Ltd (TSE:TWM), has priced an upsized initial public offering (IPO) on the Toronto Stock Exchange (TSX), now targeting CAD 150 million (USD 120m/EUR 102m) in gross proceeds.

The clean fuels company is offering 10 million common shares at a price of CAD 15.00 apiece. Initially, the transaction targeted aggregate gross proceeds of CAD 125 million but was upsized due to excess demand, Tidewater Renewables said in a statement on Thursday.

Under the 30-day over-allotment option granted to underwriters, the company could raise up to CAD 22.5 million of additional proceeds. The syndicate of underwriters is led by CIBC Capital Markets and National Bank Financial.

Tidewater Renewables’ listing was conditionally approved by the TSX, subject to the company meeting all initial requirements and conditions on or before November 8, 2021. Its stock will begin trading today under the symbol "LCFS", while the offering itself is seen to close on August 18.

Following the transaction, Tidewater Midstream will hold 71% or 68% of the common shares of Tidewater Renewables, depending on whether the underwriters exercised their option in full.

Tidewater Renewables is an ‎energy transition company that focuses on the production of low carbon fuels, including renewable ‎diesel, green hydrogen and renewable natural gas, as well as carbon capture through future initiatives. The company’s initial platform is comprised of certain pre-existing operating assets and several growth projects acquired from its parent, including existing logistics, processing capacity, storage and utilities.

(CAD 1.0 = USD 0.799/EUR 0.680)

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