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STEP Energy Services aims to raise roughly $200-million in an initial public offering this year.Todd Korol/The Globe and Mail

STEP Energy Services Ltd. aims to raise roughly $200-million in an initial public offering this year as rising oil prices lift drilling activity.

STEP, backed by private equity firm ARC Financial Corp., said in regulatory documents it would sell the shares at between $14 and $16 per unit. That puts its valuation at about $802-million at the high end, assuming 50.1 million shares outstanding, according to an updated prospectus.

The offering is co-led by CIBC World Markets Inc and Raymond James Ltd.

STEP previously bought the Canadian assets from defunct Sanjel Corp. after that company was broken up under court supervision. ‎It has said proceeds would fund capital spending and debt repayment.

Its IPO is the first in the oil patch following a lengthy downturn that comes ‎as oil prices stabilize above $50 (U.S.) a barrel.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 18/03/24 4:00pm EDT.

SymbolName% changeLast
CM-N
Canadian Imperial Bank of Commerce
+0.73%49.6
CM-T
Canadian Imperial Bank of Commerce
+0.72%67.17
STEP-T
Step Energy Services Ltd
+0.86%3.51

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