Skip to main content

Hydraulic fracturing sand is seen an operation near Bowden, Alta., Tuesday, Feb. 14, 2012.

Jeff McIntosh/The Globe and Mail

Source Energy Services Inc., Canada's largest distributor of high-quality fracking sand, is seeking to raise about $250-million in an initial public offering as a revival in oil drilling boosts demand for its product, according to people familiar with the matter.

The Calgary-based company, which is backed by TriWest Capital Partners, has hired Bank of Nova Scotia, Morgan Stanley and Bank of Montreal to lead the share sale, according to a filing late Monday. The company is seeking a valuation of about $1-billion, according to people familiar with the matter.

The company said in the filing it plans to use the proceeds from the offering to pay for the acquisition of a new facility near Blair, Wisc., pay down debt and other capital expenditures.

Story continues below advertisement

A representative for Source Energy declined to comment.

Source is the second Canadian oilfield services firm to file for an IPO in a week after STEP Energy Services Ltd. filed for its own initial stock sale last Thursday. Canadian Imperial Bank of Commerce and Raymond James Financial Inc. will be leading STEP Energy's sale.

Source Energy is hoping to capitalize on a turnaround in oilfield services as North America's fracking industry begins to improve on higher crude prices.

Hydraulic fracturing is a technique that blasts water, sand and chemicals underground to release trapped hydrocarbons. Source Energy supplies and distributes fracking sand and has operations in Western Canada, North Dakota and Texas, according to its website.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

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

Comments that violate our community guidelines will be removed.

If your comment doesn't appear immediately it has been sent to a member of our moderation team for review

Read our community guidelines here

Discussion loading ...

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.