Thoughts on the Renewables IPOThe new marketing document for the Renewables IPO looks good. Given the announcement by Brookfield today of the US$7 billion Cdn $9 billion!) first closing of their energy transition fund, I think the IPO has a good chance of being successful. The term sheet (also posted on SEDAR) indicates the comission to the selling dealers is 6%, so lots of incentive for them to sell this.
I think we could see this upsized to $150 million from $125 million if the demand is there, plus the over-allotment amounts if it is sold out. Makes sense for Renewables to put more mnoey in the bank now if they can.
As an aside TWM will bank more than the current market capitalization on closing of the IPO ($180 million cash +$405 milllion Renewables shares vs. current market cap at $1.30 around $440 million. In addition TWM will be re-imbursed around $25 million for prework on the renewable diesel project ( I think this is extra to the $180 million cash).
Below is a link to the Renewables marketing document posted on SEDAR
https://www.sedar.com/GetFile.do?lang=EN&docClass=33&issuerNo=00052722&issuerType=03&projectNo=03251738&docId=5008879