Amid falling oil prices, two energy service firms take different approaches to IPOs
Two Canadian energy service firms mulling initial public offerings are taking different approaches amid falling oil prices, with one forging ahead with its plans to make a public debut while the other is slamming on the brakes.
Source Energy Services Ltd., a TriWest Capital Partners company which produces sand used for hydraulic fracturing, is proceeding with marketing its stock sale and has plans to price its shares within the next week, according to one source familiar with the matter. The Calgary-based company said earlier this month that it aims to raise $300-million.
On the other hand, fracking company STEP Energy Services Ltd., also Calgary-based, has delayed its IPO as renewed weakness in oil prices undermines confidence in the sector. The company had filed paperwork for the offering in late February, aiming to raise about $200-million. Story
Federal watchdog to review banks' sales tactics
The consumer protection watchdog that oversees Canada's financial institutions will review sales tactics after allegations that some bank staff chasing lofty sales goals have felt pressured into behaving unethically.
The Financial Consumer Agency of Canada (FCAC) will start a business practices probe in April. The agency does annual industry reviews; this time, it will zero-in on bank employees' obligation to get consent and give proper disclosure about fees and costs when selling customers new products.
Regulators have been more alert to issues of consent since U.S. bank Wells Fargo & Co. was fined $185-million (U.S.) over a scandal that revealed the lender had opened about two million unauthorized accounts. So far, nothing points to such large-scale misconduct at Canadian banks, but sales tactics are nevertheless under closer scrutiny. Story
DAILY DEALS
Western Energy Services Corp. has upped the ante in the takeover battle for Savanna Energy Services Corp. Story
AT&T Inc has won approval from the European Commission for its planned $85.4-billion acquisition of Time Warner Inc, the No. 2 U.S. wireless carrier said on Wednesday. Story
ELSEWHERE IN FINANCE
For all the squawking on Wall Street – and there is plenty – about this year's bonus season, the average New York banker took home a slightly bigger bonus in 2016 than a year earlier. Story (WSJ, subscription required)
Todd David Alpert was a security guard for a board member of H.J. Heinz Co. in 2013 when federal regulators say he received an e-mail from his employer spelling out terms of an impending takeover of the food company. Story (Bloomberg)
Fintech got a thumbs-up from regulators on Wednesday, as a long-awaited national banking license for financial-technology firms took shape and the head of the Commodity Futures Trading Commission said he was moving quickly to see what the agency could do to foster the emerging industry. Story (WSJ, subscription required)