Junior Energy Company Source Rock Royalties Files For IPO

Source Rock Royalties, an energy royalties’ firm, aims to be Canada’s first oil company to complete an initial public offering (IPO) since Topaz Energy (TPZ) raised $230 million in 2020.

In what would be a rare IPO for a junior Canadian energy company, Source Rock Royalties, which is backed by Canadian National Railway’s (CNR) investment division, is looking to raise a relatively modest $10 million, according to a preliminary prospectus filed with the Canadian Securities Administrators.

Canadian National Railway has been a shareholder in Source Rock Royalties since 2014 and currently owns approximately 26% of the company’s common shares. No other shareholder owns more than 10 per cent of the company’s equity.