February 15, 2011 / 4:41 PM / in 7 years

Progress Energy Resources shrs dip on discounted bought deal

Feb 15 (Reuters) - Shares of Canadian oil and gas explorer Progress Energy Resources Corp fell as much as 7 percent on Tuesday, a day after it said it intends to raise about C$400.2 million ($404.7 million) in a discounted bought deal.

Progress Energy said it would issue about 14.4 million shares at C$13.90 apiece to a syndicate of underwriters led by BMO Capital Markets, Scotia Capital Inc, CIBC World Markets and RBC Capital Markets. The pricing is at a 2 percent discount to the stock’s Monday close of C$14.15.

“Its difficult to price equity at a discount to the market. It’s no surprise that the stock is trading down,” said Dundee Securities Corp analyst Grant Daunheimer.

Shares of the Calgary, Alberta-based company were trading at C$13.50 on Tuesday morning on the Toronto Stock Exchange. ($1=.9888 Canadian Dollar) (Reporting by Amruta Sabnis and Abhiram Nandakumar in Bangalore; Editing by Roshni Menon)

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