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Energy

Does Trident Resources’ IPO Withdrawal Kill a Sector?

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By Douglas A. McIntyre Published
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IPO withdrawals are always an interesting aspect of the IPO market, but these can lead to insights in the sector in which they each operate.  Yesterday there was a withdrawal of the IPO filing by Trident Resources in Canada, which was set to IPO with the ticker TRNT on NASDAQ. 

Trident is a Calgary-based natural gas exploration and development company, and the withdrawal was over a proposed $300 million IPO. It is a quasi-alternative energy provider that develops natural gas from coal.  Here is the problem: It cited market conditions as the reason for the withdrawal.  The underwriters were listed as Credit Suisse, Morgan Stanley and TD Securities; and this one had been in the hopper since its filing in mid-2006. 

This is an interesting story because it can have implications in the sector.   Trident was just formed as an operating entity in 2006, so it isn’t as though you can infer that all of these might be in trouble; but earlier last year and the year before companies like this were able to come public almost without question and without any skepticism.

Coal companies and natural gas companies have not enjoyed the same steady demand as oil companies.  This could have implications in other similar offerings that have been said to looking to come public via an IPO later in the year.

Jon C. Ogg
February 6, 2007

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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