STEP Energy Services Ltd., a portfolio company of ARC Financial Corp., has priced its initial public offering (IPO) and secondary offering upon exercise of over-allotment option.
STEP Energy Services intends to issue 10 million shares at $10.00 per share for gross proceeds of $100 million. The offering is expected to close on or about May 2, 2017.
Selling shareholders, ARC Energy Fund 6 and ARC Energy Fund 8, have granted the underwriters an option, to purchase from ARC Energy Fund 6 up to an additional 506,494 common shares and from ARC Energy Fund 8 up to an additional 993,506 common shares.
The offering is being underwritten by CIBC World Markets Inc. and Raymond James Ltd. as co-lead underwriters and BMO Nesbitt Burns Inc., Peters & Co. Limited, RBC Dominion Securities Inc., GMP Securities L.P., National Bank Financial Inc., Scotia Capital Inc. and AltaCorp Capital Inc.
Stikeman Elliott LLP and Thompson & Knight LLP act as Canadian and US legal counsel to STEP while Dentons Canada LLP and Dentons US LLP act as legal counsels to the underwriters.
Following the closing of the offering and assuming full exercise of over-allotment option, ARC Energy Fund 6 and ARC Energy Fund 8 will continue to own 15,093,506 (25.11%) and 29,606,494 (49.25%) shares respectively. On a fully diluted basis, assuming the exercise of outstanding prior options and performance warrants, ARC 6 and ARC 8 shares will be reduced to 20.50% and 40.21%.
photo credit: STEP Energy Services