Pinnacle Renewable Holdings completes IPO in Canada

By Erin Voegele | February 06, 2018

On Feb. 6, Canadian pellet producer Pinnacle Renewable Holdings Inc. announced the successful closing of its initial public offering (IPO) and secondary offering of its common shares. The common shares began trading Feb. 6 on the Toronto Stock Exchange under the symbol “PL.” The company first announced plans to file for an IPO in December.

The offering included a treasury offering by Pinnacle and a secondary offering of common shares by certain existing shareholders at a price of $11.25 per common share. Pinnacle sold more than 6.22 million common shares for a total gross proceeds of approximately $70 million. The selling shareholders sold more than 7.11 million common shares for a gross total proceeds of approximately $80 million.

Information released by Pinnacle indicates the underwriters have also been granted an over-allotment option to purchase more than 2 million additional common shares from certain selling shareholders at a price of $11.25 per common share for additional gross proceeds of approximately $22.5 million. The over-allotment option can be exercised within 30 days of the closing date of the offering.

Pinnacle currently operates six pellet facilities, located in the British Columbia cities of Armstrong, Williams Lake, Meadowbank/Hixon, Houston, Burns Lake, and Lavington. The company also has a port terminal and new production facilities under development in Entwistle, Alberta, and Smithers, British Columbia.

Pinnacle previously noted it has entered into long-term take-or-pay contracts with utilities in the U.K., Europe and Asia that represent 100 percent of its production capacity through 2021 and nearly 80 percent of its production capacity through 2026.