STEP Energy Services raises $100 million in IPO, half of initial target

CALGARY -- STEP Energy Services (TSX:STEP) says it has raised $100 million in its initial public offering of common shares, falling short of the $200 million it had previously hoped to gain.

The news illustrates how Calgary-based oil and gas services companies are continuing to struggle on the capital markets.

Last month, Source Energy Services (TSX:SHLE) closed a $175-million IPO at $10.50 per share after initially aiming to raise about $300 million with shares priced between $17 and $20.

STEP had hoped to sell its shares for between $14 and $16, according to its preliminary prospectus filed in February.

However, its adjusted prospectus filed last week set the price at $10 per share.

STEP offers a range of well completion services, while Source is one of the largest suppliers of speciality sand to Canada's well fracking industry.

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