Magma Energy IPO tops up at US$86 million with room for more
The IPO of Magma Energy Corp., a Vancouver- based geothermal power company, is hitting it big. People close to the sale said "the initial public offering has raised C$100 million ($86 million), the biggest IPO in Canada in over a year.
Reported by various sources, it seems like the IPO of Magma Energy Corp., a Vancouver- based geothermal power company, is hitting it big.
People close to the sale, so Bloomberg and the Financial Post, said “the initial public offering has raised C$100 million ($86 million), the biggest IPO in Canada in over a year.
“Investors around the world have been leaping on the initial public offering of Canadian geothermal energy firm Magma Energy Corp., highlighting the soaring interest in the sector and the superb track record of Magma’s founder.
The currently reached amount is double what some experts expected. “It’s significantly oversubscribed,” one source said. “It’s definitely one of the hottest deals of the year.”
Magma was started in early 2008 by Vancouver mining maven Ross Beaty, who hit several home runs for his investors by building up mining companies from scratch and selling them at the top of the cycle. In the past few years, he sold four copper companies, turning an investment of $80-million into a profit of $1.2-billion. He is also founder and chairman of Pan American Silver Corp.”
“Magma sold 66.7 million shares at C$1.50 each, according to people familiar with the matter. The company, which initially sought to raise C$50 million, increased its offering to meet demand, the people said today.
The sale is the biggest IPO in Canada since Toronto-based money manager Sprott Inc. went public in May 2008 in a C$200 million sale, according to Bloomberg data.
Magma plans to use the proceeds to boost electrical production by building and expanding geothermal plants and buying projects, the company said in a regulatory filing. The company has one power station in Nevada, and 18 exploration properties in the U.S., Chile, Argentina and Peru.
Magma’s chief executive officer is geologist Ross Beaty, founder and chairman of Vancouver-based Pan American Silver Corp. Beaty founded and helped sell other junior resource firms, including Equinox Resources Ltd., which was sold to Hecla Mining Co. in 1994, and Northern Peru Copper Corp.
Raymond James Ltd. and Cormark Securities Inc. are leading a group of seven firms managing the IPO. Bankers have the option to buy additional stock to meet demand. The stock sale closes July 7