Rockpoint Gas Storage Inc. launched its initial public offering on the Canadian market by pricing 32 million class A common shares at C$22 per share. The offering generated gross proceeds of approximately C$704mn ($515mn), based on the final base prospectus filed with securities regulators in all Canadian provinces and territories. An over-allotment option was also granted, allowing underwriters to purchase up to 4.8 million additional shares at the same price.
A deal led by major North American banks
The offering is underwritten by a syndicate led by RBC Capital Markets and J.P. Morgan as joint lead bookrunners. The syndicate also includes Wells Fargo Securities, BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., Scotiabank, TD Securities Inc., ATB Capital Markets, Desjardins Capital Markets, and Peters & Co. Limited.
The over-allotment option is valid for 30 days following the anticipated closing date of the offering, which is expected to occur around October 15. The shares will be listed on the Toronto Stock Exchange under the symbol “RGSI” starting October 9 on an “if, as and when issued” basis, subject to final approval of customary exchange requirements.
Brookfield retains majority voting control
Following the offering, affiliates of Brookfield Asset Management Private Institutional Capital Adviser (Canada), L.P. will hold approximately 39.8% of the 53.2 million outstanding class A shares, or 30.8% if the over-allotment option is fully exercised. They will continue to own all 79.8 million outstanding class B voting shares, representing about 75.9% of total voting rights (72.3% if the over-allotment option is fully exercised).
Class A shares carry economic rights, while class B shares give Brookfield control over Rockpoint Gas Storage’s strategic decisions. This dual-class share structure enables Brookfield to retain majority governance power while accessing new capital through the public market.
Strategic positioning in natural gas storage
Rockpoint Gas Storage operates in the natural gas storage sector, a segment seen as critical for balancing energy markets in North America. The IPO comes as gas infrastructure operators seek greater financial flexibility amid rising price volatility and cyclical demand.
According to the prospectus, the funds raised are primarily intended to expand storage capacity, optimise current operations, and strengthen the company’s competitive position in the Canadian market. No timeline or specific sites for expansion were disclosed.
