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A subsidiary of Kinder Morgan seeks to raise up to US$1.3 billion in an initial public offering in the Toronto exchange, according to a new report by Reuters.
A regulatory filing by Kinder Morgan Canada on Wednesday showed that the deal would be amongst the Toronto exchange’s five biggest IPO so far. Capital garnered from the financial event will fund the expansion of the controversial TransMountain pipeline – slated to cost US$5.4 billion (C$7.4 billion).
TransMountain runs through the province of British Columbia, which recently voted out the Liberal Party – the only political group that still backs the pipeline. But Kinder Morgan Canada remains confident about the pipeline’s prospects despite the latest political setback.
"We look forward to the opportunity to provide updates on the status of the project and its benefits to B.C.,” Company President Ian Anderson said in a statement.
The IPO will offer between 79.5 million and 92.1 million restricted voting shares to the public. Each piece, underwritten by the Toronto Dominion Bank and the Royal Bank of Canada, will cost between C$19 and C$21.
Environmental groups and First Nation tribes in Canada have demonstrated their opposition to the construction of any new pipelines in the oil- and gas-rich nation in order to encourage the adoption of renewable energy resources and prevent the potential desecration of aboriginal lands and economies.
The Canadian government approved Trans Canada’s construction in November, and the provincial government of British Columbia gave its go ahead this January – giving the project a completion date sometime in 2019.
Related: Is The U.S. Oil Patch A Value Trap?
"We're confident in the interest from the investment community and we're continuing to move forward with all aspects of planning in order to begin construction in September 2017," Ali Hounsell, spokeswoman for Kinder Morgan's Trans Mountain Expansion Project, told the CBC earlier this year.
By Zainab Calcuttawala for Oilprice.com
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Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…