TORONTO/CALGARY, Alberta (Reuters) - U.S. pipeline company Kinder Morgan Inc (KMI.N) has priced its Canadian initial public offering at C$17 per share, according to a term sheet of the deal seen by Reuters on Wednesday.
The company’s pricing, which fell below its initially projected range of C$19 to C$22 per restricted voting share, suggests that demand from investors was not as strong as previously expected. Kinder Morgan has been looking to raise capital to fund a project to expand its Trans Mountain pipeline.
Kinder Morgan now plans to offer 102.94 million shares, raising C$1.75 billion ($1.3 billion) in gross proceeds, the term sheet, which was dated Wednesday, showed.
Kinder Morgan spokesman Dave Conover declined to comment.
The move comes during a period of political uncertainty in British Columbia, with election results in the province expected to weigh on Kinder Morgan’s Trans Mountain pipeline expansion plans. The pro-pipeline Liberals failed to win a majority and voters in the province may elect a minority government that includes parties that oppose the project.
Election results are still being tallied, including a recount in three key districts. An unfriendly provincial government could pose obstacles to Trans Mountain, which runs through British Columbia, even though the federal government has approved it.
Reporting by John Tilak in Toronto and Nia Williams in Calgary; Editing by Peter Cooney and Matthew Lewis