By May 24, 2017 Read More →

Kinder Morgan prices Trans Mountain IPO at $17/share

Trans Mountain IPO

The Trans Mountain IPO comes at a time when the BC political future is hazy and Greenpeace has requested a review of Kinder Morgan’s regulatory filings. Trans Mountain photo.

Weaker demand than expected for Trans Mountain IPO

A report by Reuters on Wednesday says US pipeline company Kinder Morgan Inc. will price its Trans Mountain IPO at $17 per share.

In a term sheet seen by Reuters, the company’s pricing appears to be lower than its initially projected range of C$19 to C$22 per restricted voting share.  This suggests that investor demand was not as strong as previously anticipated.

Kinder Morgan will offer 102.94 million shares, to raise $1.75 billion in gross proceeds, according to the term sheet dated Wednesday.

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The IPO offering comes at a time when Trans Mountain is in the midst of political uncertainty and environmental attacks.

Earlier in the month, the province of British Columbia held its provincial election.  Recounts have still not been completed and it is unsure who will form government. A vote recount could make the anti-pipeline party, the NDP, government in the province which could mean more hurdles for the pipeline company.

As well, Greenpeace recently requested that the Alberta securities regulator review Kinder Morgan’s regulatory filings.  The environmental group believes Kinder Morgan overestimated the growth in the Asian market and did not fully disclose the possible climate change risks associated with the pipeline.

Dave Conover, spokesman for Kinder Morgan declined Reuters’ request for comment.



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