Pinnacle Renewable Energy files for IPO in Canada

By Erin Voegele | December 21, 2017

On Dec. 15, Canadian pellet producer Pinnacle Renewable Energy filed a preliminary prospectus with securities regulatory authorities in Canada for a proposed initial public offering (IPO) of common shares.

Information released by Pinnacle indicates the offering contemplates a primary offering of common shares from treasury and a secondary offering of common shares by certain existing shareholders, including entities affiliated with ONCAP, the middle-market private equity platform of Onex Corp.

The offering is being co-led by CIBC Capital Markets and RBC Capital Markets, together with BMO Nesbitt Burns Inc and Scotia Capital Inc., as joint bookrunners, and National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd. and HSBC Securities (Canada) Inc., as underwriters.

A press releases issued by Pinnacle states the company is the third largest pellet producer in the world. The company produces industrial wood pellets that are used by utilities and large-scale power generators to produce renewable, baseload power.

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 said 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.