Palm Oil Develops $2.7 Billion in Oil Sands Development
Palm Oil Development Inc. has filed for an initial public offering, raising $2 billion, the company said on Thursday.
The stock is up by $2,900, or 4.6%, on Thursday, when the Nasdaq opened.
The company said it expects to raise $1.5 billion in debt financing, raising the total amount it expects investors to put on the market to $3.5 million.
The shares trade on the Nashees Nasdaq Global Select Market under the ticker symbol PAX.
Palm’s latest investment follows its previous investment in the oil sands and oil sands development, which it acquired in 2016.
The deal valued the companies at $1 billion.
The company has a long track record of investing in the oilsands, which are the second-largest in the world behind Canada’s tar sands, but are less well understood.
The oil sands can produce up to 6.5% of the world’s oil.
Palms board of directors approved the IPO.
In 2015, it acquired the oil-sands company, Oasis Petroleum Corp., for $3 billion.