Oil pump jack
Tourmaline Oil Corp., a growing company with big-name backers, is the latest to dive into the market for initial public offerings with a plan to sell stock that is expected to value the company at more than $2-billion.
Oil executive Mike Rose and his team started Tourmaline after selling Duvernay Oil Corp. for about $6-billion just two years ago, and already have grown it into one of the most highly touted new plays in the energy patch.
Peters & Co. Ltd., FirstEnergy Capital Corp., Scotia Capital Inc., TD Securities Inc. and Cormark Securities Inc. are arranging the sale, according to documents filed with regulators.
The IPO market is suddenly heating up, with Tourmaline's filing following close on the heels of filings by ski area owner Whistler Blackcomb Holdings and TransAxio Highway Concession Inc., which is raising money to buy a stake in a Toronto-area toll highway.
Tourmaline is already producing, and has a big land inventory and an aggressive plan to drill more wells to increase output. The company has already raised almost $1-billion from private placements of stock with investors, and completed 16 acquisitions to get to where it is today.
The shares are likely to be priced at $20 to $22 apiece, and will raise about $125-million for the company, according to Reuters.