(Reuters) – Canadian exploration and production company Journey Energy Inc said on Friday it plans to raise $198 million via an initial public offering and secondary offering on the Toronto Stock Exchange.
The offering of 16.5 million shares, which is priced at $12 a share, is being underwritten and led by BMO Nesbitt Burns and CIBC World Markets Inc.
The Calgary, Alberta-based company is selling 14 million shares from its treasury, while its principal shareholder PSP Investments—a large Canadian pension fund manager—is selling 2.5 million shares that it controls. PSP will continue to retain a stake of about 30 percent in the company following the close of the offer.
The company expects to receive net proceeds of about $157 million from the initial public offering, along with about $10 million in proceeds from a separate private placement offering.
The company plans to use the proceeds to pay down some of its outstanding debt.
Journey Energy engages in the exploration, development, and production of oil and natural gas in the Western Canada Sedimentary Basin.
(Reporting by Euan Rocha; Editing by Chizu Nomiyama)
(This story has been edited by Kirk Falconer, Editor of peHUB Canada)
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