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Encana spinoff PrairieSky Canada's biggest IPO in 14 years

Calgary-based Encana Corp. has raised $1.46 billion in an initial public offering of its PrairieSky Ltd. royalty business, the biggest IPO since 2000.

Energy royalty unit raises $1.46 billion on Canadian markets

CBC News ·
Doug Suttles, president and CEO of Encana, addresses the company's annual meeting in Calgary on May 13, 2014. Encana spun off its royalty unit PrairieSky on Thursday, pulling in $1.46 billion. (Jeff McIntosh/Canadian Press)

Calgary-based Encana Corp. has raised $1.46 billion in an initial public offering of its PrairieSky Ltd. royalty business.

The natural gas producer announced Thursday that it sold 52 million shares at $28 a share, making it the largest IPO in 14 years.

The sale is the riches since 2000, when Sun Life Financial raised 1.8 billion.

Encana retains 60 per cent ownership in PrairieSky, which is an energy royalty company holding rights to about 5.2 million acres (2.1 million hectares) of oil and gas areas in central and southern Alberta.

The Toronto Stock Exchange has conditionally approved the listing of the common shares under the symbol "PSK."

Encana CEO Doug Suttles has a strategy to turn around the company, which has been hurt by falling gas prices, by selling assets and focusing on properties that produce higher-value oil and gas.

The company recently bought a large oil-producing property in south Texas for $3.1 billion
 

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