Encana Corporation and PrairieSky Royalty Ltd have announced that the initial public offering of 52,000,000 common stocks of PrairieSky has been completed at an offering price of $28.00.
The Offering was implemented by way of a secondary offering by Encana which secured total gross proceeds of nearly $1.46 billion.
Encana owns 60% of the common stocks of PrairieSky, as at the Offering's closing.
If an over-allotment option is exercised in full, Encana's holding level in PrairieSky will be lowered to 54%.
Encana President & CEO, Doug Suttles, said : "The successful launch of the PrairieSky IPO marks the achievement of a major objective in our 2014 plan that was laid out at the time of our strategy announcement in November 2013. The creation of PrairieSky has unlocked value from our royalty business, which is a great example of the quality assets in our portfolio," says "I am confident that PrairieSky's strong leadership team will capture the full potential of this unique asset base."
PrairieSky President & CEO, Andrew Phillips, added : "This is an exciting day for our company, marking the creation of PrairieSky, owner of one of the largest and most concentrated independently-owned fee simple mineral title positions in Canada. I want to thank our staff, the members of my leadership team and PrairieSky's Board of Directors for their hard work to get us to this point. In addition, we thank Encana for their efforts in making PrairieSky a reality. It gives me great satisfaction to announce that PrairieSky is officially open for business."