TransCanada Corp raises $4.42 billion in largest share sale in Canadian history: sources

TransCanada Corp. raised $4.42 billion (US$3.37 billion) in the largest share sale in Canadian history, based on people acquainted with the sale, sending energy financings in the country towards the best begin in a minimum of two decades as oil prices rebounded.

TransCanada’s equity sale to help fund its purchase of Columbia Pipeline Group Inc. eclipsed Barrick Gold Corp.’s $4.33 billion issue in September 2009, based on data compiled by Bloomberg. Fifteen investment banks will get about $144 million for arranging the offering for the Calgary-based pipeline operator, according to fees of 3.25 % in a March 18 regulatory filing.

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The sale lifts announced equity financing in Canada’s energy industry to $8.59 billion this season, up 66 per cent from the year ago and also the best begin to the year since at least 1994, the information show. Energy firms happen to be pursuing financing to fund takeovers and capital expenditure plans as the price of crude rallies from the worst downturn in a generation. Investors are only too prepared to lap up shares.

In accessory for TransCanada, other offerings included a $2.3 billion sale by Enbridge Inc., and $300 million offerings from Pembina Pipeline Corp. and Seven Generations Energy Ltd. Energy companies taken into account two thirds from the $13.1 billion raised from stock sales in the united states, Bloomberg data show.

Bloomberg News