Seven Generations Said Working With RBC, Peters on Canada IPO

Jul 31, 2014 12:01 am ET

July 31 (Bloomberg) -- Seven Generations Energy Ltd., an oil and natural gas producer backed by the Ziff family and Canada Pension Plan Investment Board, hired Royal Bank of Canada and Peters & Co. to help arrange its initial public offering, said people familiar with the process.

Seven Generations, based in Calgary, plans to complete the Canadian IPO by the end of the year and raise more than C$500 million ($459 million), said one of the people, who asked not to be identified because the matter is private.

Seven Generations would join Calgary-based firms including PrairieSky Royalty Ltd. and Journey Energy Inc. in pursuing initial stock sales in Canada this year. Encana Corp. raised C$1.46 billion in May by selling stakes in its PrairieSky unit in Canada’s largest IPO in 14 years. That was followed in June by the C$198 million sale by Journey Energy.

Calgary-based Northern Blizzard Resources Inc., a Canadian oil producer developing prospects in Saskatchewan, and its private-equity investors are seeking to raise about C$500 million in a sale expected to be priced today.

Companies have raised $2.28 billion in initial stock sales in Canada this year, led by energy firms, up about 13 percent from the same period a year earlier, according to data compiled by Bloomberg. That marks the busiest first seven months for IPOs since 2010, the data show.

Chief Executive Officer Pat Carlson founded Seven Generations in 2008, raising more than $300 million from investors including Arc Financial Corp., Natural Gas Partners, Kern Partners, and ZBI Ventures, an investment firm controlled by the Ziff family of New York, whose patriarch William Ziff built a publishing fortune. Canada Pension purchased its initial stake in the company in May 2012.

Carlson and Christopher S. Potter, Calgary-based Peters & Co.’s chief executive officer, didn’t return calls seeking comment.

Kevin Foster, a spokesman for Toronto-based Royal Bank’s RBC Capital Markets unit, declined to comment when reached by phone.

--With assistance from Rebecca Penty in Calgary and Divya Balji in Toronto.