Onex-backed Canadian renewables firm Pinnacle files for IPO
Pinnacle Renewable Energy Inc, a wood pellets producer owned by Canadian private equity firm Onex Corp , said on Monday it has filed a preliminary prospectus with the Toronto Stock Exchange for an initial public offering of its common shares.
The company, which serves large European and Asian power generators such as Drax Group Plc, RWE Ag and Mitsubishi Corp expects to raise about C$175 million ($136.10 million) from the share sale.
The offering could be the second-biggest renewable energy IPO in Canada after TransAlta Renewables Inc raised C$221 million in 2013, according to Thomson Reuters data.
Pinnacle, one of the world’s biggest producers of wood pellets, intends to use the IPO proceeds to pay down debt and fund construction of more facilities.
The company had reported a net loss of C$5.4 million in the nine months ended Sept.9, compared with a profit of C$2.02 million, a year earlier. Its revenue had risen 12.5 percent to C$219.8 million in the same period.
The industrial wood pellet industry is witnessing an extended period of growth in demand, driven by the transition to renewable energy, especially in the U.K., the company said in the regulatory filing.
ONCAP, a unit of Onex that focuses on the middle market, had acquired a majority stake in Pinnacle in 2011 for C$71 million, according to ONCAP’s website.
The private equity firm has hired CIBC as the lead underwriter for the IPO. ($1 = 1.2858 Canadian dollars)
Source: Reuters
