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Gibson's private equity backer starts its exit Add to ...

Just four months after Gibson Energy Inc. closed its $568-million initial public offering, its private equity backer, Riverstone Holdings, is starting to unload its shares into the market.

This selling isn’t a bad thing. In fact, it’s a great news. Despite horrible markets, Gibson’s stock is actually up 16 per cent since it started trading, and that’s convinced Riverstone to start selling its shares to the public.

Before the sale, Riverstone held 58 million shares, worth 62 per cent of the company. After the sale, it will lose its majority ownership status, as its stake will fall to 47 per cent.

Gibson launched its IPO back in April when oil prices were soaring, but crude took a tumble a few weeks into its marketing road show. Ultimately, Gibson had to cut its IPO price. In hindsight, that’s proved to be a good thing because its shares have traded up since and Riverstone is now willing to sell. (Riverstone only sold a tiny portion of its holdings in the IPO’s over-allotment option the first time around.)

Gibson Energy, which specializes in energy services, has been around for more than 50 years and is involved in everything from truck and pipeline transportation to refining to processing and drilling fluids. In other words, it’s a one-stop shop for many oil and gas producers.

BMO, which led the IPO, and is the secondary offering’s bookrunner.


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