PETROCAN SHARE SALE COMPLETE

A public offering of 39.5 million shares in Canada's state oil company at $13 (Canadian)/share has been sold out, netting $513.5 million. The 42 million shares sold represent about 19.5% of the company. The sale is the first step in federal efforts to privatize Petro-Canada, Calgary. The share price was set at $13 instead of an expected $15 in light of losses earlier this year. Analysts have estimated the company's net asset value at $26.48/share.

July 1, 1991

A public offering of 39.5 million shares in Canada's state oil company at $13 (Canadian)/share has been sold out, netting $513.5 million.

The 42 million shares sold represent about 19.5% of the company. The sale is the first step in federal efforts to privatize Petro-Canada, Calgary. The share price was set at $13 instead of an expected $15 in light of losses earlier this year. Analysts have estimated the company's net asset value at $26.48/share.

About 8.2 million shares were sold to foreign investors and 2.5 million shares to Petro-Canada employees. The rest were sold to individual Canadian buyers and institutional buyers. Proceeds are expected to apply to Petro-Canada's short term debt and its 25% share of development Costs for the Hibernia oil field.