TORONTO/ALBERTA, May 30, Shares in Kinder Morgan
Canadian debuted at C$16.06 on Tuesday on the Toronto
Stock Exchange after raising C$1.75 billion ($1.3 billion) in an
initial public offering (IP0) at C$17.00 each last week.
Kinder Morgan spun off its Canadian unit to
part-finance the expansion of Trans Mountain pipeline, but
political opposition to the project is set to mount after an
election this month in the province of British Columbia, through
which the pipeline runs, resulted in an informal alliance of two
anti-Trans Mountain parties rising to power.
Kinder Morgan's C$17 per-share target was a revision from
its original projected range of C$19 to C$22. The company has
acknowledged "the political climate was not ideal," but said it
has made a final investment decision on Trans Mountain and filed
for an IPO anyway as the project's financing contingency period
concludes at the end of May.
The Trans Mountain expansion nearly triples the capacity of
the crude pipeline from the oil-producing Alberta province to
the British Columbia coast.
Prime Minister Justin Trudeau said the Trans Mountain
pipeline will proceed despite the political threat to kill the
project in British Columbia.
"Regardless of the change in government in British Columbia
or anywhere else, the facts and evidence do not change," Trudeau
told reporters at a joint news conference with his Italian
counterpart in Rome, The Globe and Mail reported on Tuesday.
By 9:33 AM EST, the shares were trading at C$16.00, down 5.9
percent from the IPO price.
($1 = 1.3488 Canadian dollars)
(Reporting by Ethan Lou; Editing by Nick Zieminski)