CPE News (8/13/2021) – Tidewater Renewables Ltd. has priced its proposed initial public offering of common shares at $15 per share. Tidewater Renewables will issue 10 million common shares from treasury at $15 per share for gross proceeds of $150 million.
Tidewater Renewables’ common shares commenced trading today on the Toronto Stock Exchange (TSX) under the symbol “LCFS.” Its stock opened at $14.50 and traded at $14.80 at 2:39 PM ET.
The offering is expected to close on August 18, 2021.
Tidewater Renewables Ltd. was formed to become a multi-faceted, energy transition company. The company intends to focus on the production of low carbon fuels, including renewable diesel, renewable hydrogen, renewable natural gas, as well as carbon capture. Tidewater Renewables will acquire certain pre-existing operating assets from Tidewater Midstream and Infrastructure Ltd. (TSX: TWM) for aggregate consideration of approximately $585 million, consisting of $180 million in cash and the issuance of common shares at the offering price.
The entire net proceeds of the offering (approximately $138 million) will be applied towards a portion of the cash component of the purchase price for the acquired assets.
Upon closing of the offering and completion of the acquisition, Tidewater Midstream will own approximately 70.50% of the outstanding common shares or 67.51% if the over-allotment option is exercised in full.
photo credit: Tidewater