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PE-backed Seven Generations Energy seeks $800 mln from IPO

Canadian energy company Seven Generations Energy hopes to raise around $800 million from its initial public offering (IPO), according to documents filed with SEDAR.

The Calgary-based company, which last month filed a preliminary prospectus with most Canadian securities commissions, anticipates an offering price of between $17 and $21 per common share on the Toronto Stock Exchange.

Previous reports suggested that Seven Generations was seeking to raise somewhere between $500 million and $1 billion.

The documents also confirmed the IPO will include a secondary shares offering for two of the company’s Canadian private equity investors: ARC Financial Corp and KERN Partners. Additional details about the secondary deal were not provided.

Seven Generations, which is focused on acquiring and developing high-quality tight and shale hydrocarbon resource plays, was founded in 2008 with the support of ARC, KERN, and U.S.-based Natural Gas Partners and ZBI Ventures. They were later joined by Canada Pension Plan Investment Board (CPPIB). The company is led by CEO Patrick Carlson.

In April, Seven Generations closed a $633 million secondary offering by ARC, KERN, Natural Gas Partners and ZBI. Following that transaction, the selling investors continued to hold around 31 percent of total shares.

According to SEDAR documents, CPPIB holds 18.8 percent of company shares, while ARC holds 15.3 percent and KERN holds 10.4 percent.

Seven Generations said it plans to use IPO proceeds to fund its on-going capital investment program. At present, activity is concentrated on a single asset—the Kakwa River project, a large-scale, tight, liquids-rich natural gas property in Alberta.

The IPO, which is expected to close before the end of 2014, is being made through a syndicate of underwriters co-led by RBC Dominion Securities Inc, Credit Suisse Securities (Canada) Inc and Peters & Co Ltd.

In August, another Canadian PE-backed energy company, Northern Blizzard Resources Inc, raised gross proceeds of $500 million from its IPO.

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