Rockpoint Gas Storage Inc. priced its initial public offering at C$22 per share, raising a total of C$704mn ($512mn). The transaction includes 32 million class A common shares issued through an upsized public offering. The process followed the filing of a final base PREP prospectus in all Canadian provinces and territories.
Brookfield retains majority voting control
The offering also includes an over-allotment option of 4.8 million additional shares, exercisable within 30 days of closing. This option, aimed at covering over-allotments and ensuring market stabilisation, could bring the total number of shares issued to 36.8 million if fully exercised.
Following the transaction, 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. Brookfield will retain all 79.8 million voting class B shares, representing 75.9% of total voting rights (72.3% if the over-allotment option is exercised in full).
Listing on the Canadian market through the Toronto Stock Exchange
The class A shares will begin trading on October 9 on the Toronto Stock Exchange under the symbol “RGSI”, on an “if, as and when issued” basis. Closing of the offering is expected around October 15, subject to customary conditions.
The transaction was managed by a syndicate of banks jointly led by RBC Capital Markets and J.P. Morgan, as lead bookrunners. Other participating financial institutions included 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.
A market opening move in a shifting sector
The offering represents a strategic move to open Rockpoint’s capital, which specialises in natural gas storage, without transferring control of the company. The funds raised will not be allocated to the company, as the offering concerns only existing shares sold by current shareholders.
With this listing, Rockpoint joins a select group of energy infrastructure operators listed on the Canadian market. The medium-term evolution of Brookfield’s shareholding remains a point of attention in the context of a possible gradual reduction of its controlling position.
