ARC Financial’s STEP Energy Services files for IPO and secondary offering

Ted Liu

Updated on:

ARC Financial owned STEP Energy Services files 2nd amendment to proposed IPO led by CIBC World Markets and Raymond James

STEP Energy Services Ltd., a portfolio company of ARC Financial Corp., has filed a preliminary prospectus for a proposed initial public offering (IPO) and con-current secondary offering by ARC Energy Fund 6, ARC Energy Fund 8, and company management. The offering is to be priced depending on market conditions.

ARC Energy Fund 6 and ARC Energy Fund 8 collectively control 93% of STEP outstanding shares on non-diluted basis or 73% on fully diluted basis.

The offering is being underwritten by CIBC World Markets Inc. and Raymond James Ltd. 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.

Founded in 2011, STEP is an oilfield service company that provides specialized and fully integrated coiled tubing and fracturing solutions.

For the nine months ended September 30, 2106, STEP reported $105 million in consolidate revenues and $17 million in net loss. For the year ended December 31, 2105, it reported $115 million in revenues and $5.6 million in net loss.

STEP employs approximately 775 professionals as of February 8, 2017.

photo credit: STEP Energy Services