Strad Energy Services, a company that was founded and grew in Stettler, recently raised $40 million as it sold its first batch of publicly traded shares to help the company meet growing demands around North America.
The company’s 10 million shares, offered at $4 a share, began to be traded on the Toronto Stock Exchange on Tuesday, Nov. 23 under the symbol SDY.
“This is a significant corporate milestone, with the offering substantially funding our 2011 capital expenditure program and supporting the continued development of our business strategy,” said Henry van der Sloot, chief executive officer of Strad.
Funds raised with the over-allotment option – if any – will also be utilized to fund the corporation’s 2011 capital expenditure program for mainly rental equipment.
“This will increase our ability to get more demand for our products and services,” van der Sloot said.
One of North America’s fastest-growing companies with a diversified energy services portfolio, Strad focuses on providing oil field solutions to the oil and gas industry in western Canada and United States. The company’s Stettler area operation employs more than 100 people.
“This will strengthen our company and people will see that strength in Strad,” said van der Sloot.
“We will get more interest from people around North America.”
“We’ve been in a nice position to expand into British Columbia and the United States,” said van der Sloot.
Shares were offered through a process managed by a syndicate of investment dealers led by Raymond James Ltd. and included CIBC World Markets Inc, Macquarie Capital Markets Canada Inc. and Paradigm Capital Inc.
Strad has also authorized the investment dealers to offer an additional 1.5 million shares for sale for up to 30 days from the first trading day at the price of $4 per share to cover over-allotment, if any, and for market-stabilization purposes.