EnerVest Energy and Oil Sands Total Return Trust has completed its initial public offering of trust units.
The units commenced trading on the Toronto Stock Exchange today under the symbol “EOS.UN”.
EnerVest issued 5 million trust units at $10 per unit for gross proceeds of $50 million.
EnerVest will use the proceeds from to invest in an actively managed portfolio of companies, royalty and income trusts involved in the development of the oil sands, as well as suppliers to oil sands projects who derive a portion of their revenue and net earnings from sales of products or provision of services to issuers participating in the oil sands.
The trust will also invest in traditional oil and gas royalty trusts and similar issuers.
EnerVest intends to make monthly cash distributions which are anticipated to be 50¢ per unit per year, or a yield of 5% on the original issue price of $10.
The offering was made through a syndicate of investment dealers, co led by Raymond James Ltd. and CIBC World Markets Inc. that includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., GMP Securities L.P., Blackmont Capital Inc., Canaccord Capital Corp., HSBC Securities (Canada) Inc., Desjardins Securities Inc., Dundee Securities Corp., Research Capital Corp., Richardson Partners Financial Limited and Wellington West Capital Inc.