BP Canada Inc. has filed a preliminary prospectus for an offering in Canada of 3,000,000 common shares at a price of $36.625 per share. The underwriters for the issue are Wood Gundy Inc. and McLeod Young Weir Ltd.
The net proceeds from the offering will be used by the company to provide financing for its capital expenditure program and to take advantage of investment opportunities.
BP Canada notes that of its outstanding 22 million shares, approximately 35% are held by the public, with the remainder being held by The British Petroleum Co. through its wholly-owned subsidiary, BP Canadian Holdings.
British Petroleum has agreed not to take up any of the new issue. As a result the number of BP Canada’s share available to the public will increase by 38%.
As a further step in promoting a more active market in the shares, BP Canada is proposing a two-for- one split of the shares at a special general meeting of shareholders to be convened in April.
Arrangements have been made with the underwriters for the marketing of the shares to both retail and institutional investors.
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