May 29, 2014 - 8:03 AM
CALGARY - Encana Corp. spinoff PrairieSky Royalty Ltd. (TSX:PSK) is making quite a debut on the Toronto Stock Exchange.
PrairieSky shares are trading about 30 per cent higher than their initial public offering price of $28 per share, surging above $36 on the TSX.
As part of a sweeping new strategy unveiled last fall, Calgary-based energy producer Encana (TSX:ECA) decided to separate a big chunk of its Alberta royalty lands into a new publicly traded company.
As of the IPO's closing on Thursday, Encana had a 60 per cent stake in PrairieSky and had raised $1.46 billion.
The offering's underwriters, led by TD Securities and CIBC, have been granted the option to buy 7.8 million shares, which would increase Encana's proceeds to $1.67 billion if exercised in full.
PrairieSky CEO Andrew Phillips says it's an exciting day for his company.
News from © The Canadian Press, 2014