Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Topaz Energy Corp., the spinoff of natural gas producer Tourmaline Oil Corp., aims to raise up to $253-million in an initial public offering and secondary issue of shares that follow months of difficult conditions in Canada’s energy industry.

Topaz, a royalty and energy-infrastructure company, hopes to raise about $218-million in the treasury offering, and Calgary-based Tourmaline plans to sell stock worth $35-million, according to a preliminary prospectus filed late on Thursday.

The range for the share price is set at $13 to $15, with pricing expected in mid- to late October, according to the document, which confirmed an earlier Globe and Mail story.

Story continues below advertisement

The underwriting syndicate is being led by Peters & Co. Ltd. and Bank of Nova Scotia. Underwriters are being given overallotment options of up to another 15 per cent of the shares being issued. The shares will trade on the Toronto Stock Exchange.

If successful, the Topaz deal would be the first sizable IPO in Canada’s energy sector in two years. The oil patch and energy-finance industry have been watching closely for the offering after months of severe strain in the sector that accompanied the COVID-19 pandemic. Oil prices crashed amid global lockdowns, and many oil and gas producers faced concerns about falling cash flow and rising debt levels, sparking calls for government support.

Tourmaline and Topaz, however, have been seen as consolidators in the industry, especially amid improvement natural gas prices. Tourmaline chief executive Mike Rose has described prospects for buying up additional natural gas properties in the British Columbia Montney and Alberta Deep Basin regions as “a generational opportunity.”

Indeed, Topaz is expected to use the proceeds from the deal to acquire more royalty interests and stakes in natural-gas processing and other facilities. It recently increased its holdings by paying $100-million for a minority stake in a gas plant owned by Advantage Oil & Gas.

Tourmaline currently has a 64-per-cent interest in Topaz, which it spun off late last year. It would retain a majority interest after the offering. Its shares rose 2 per cent to $17.13, after The Globe reported that the Topaz IPO was expected as early as Thursday. Tourmaline is up 11 per cent year to date, vastly outpacing the S&P/TSX energy group, which is down by more than half.

Officials from Tourmaline, Peters & Co. and Bank of Nova Scotia did not respond to requests for comment.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the authors of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies