After a string of Canadian IPOs either fell apart or had soft demand earlier this fall, the end of the 2010 has been quite promising.
PetroNova Inc. is the latest company to go public, successfully raising $65-million in a transaction that closed Monday. It may not be a blockbuster offering, but it proves deals continue to get done. Last week Pretium Resources Inc. priced its $265-million IPO to buy assets from Silver Standard Resources Inc.
PetroNova will use the proceeds to acquire and develop oil and gas properties in Colombia. The company already owns a few blocks and exploration drilling will start next year.
Colombia is quickly becoming a hot area in the resource sector. Oil and gas assets continue to be shopped and the country's mining industry is heating up, fuelled by Eike Batista's $1.2-billion bid for Ventana Cold Corp.
PetroNova's offering priced at $1.25 per share. Raymond James led the IPO and Borden Ladner Gervais LLP provided legal advice.