Meranex delays $155-million IPO

Issue • Meranex Energy Trust, a Calgary-based company seeking to develop oil and gas assets in the U.S., postponed its initial public offering due to “market conditions,” said two people familiar with the transaction.

Meranex planned to sell about $155 million of units, according to the people, who declined to be identified because the details aren’t public.

Meranex was using the proceeds to buy and develop oil and natural gas reserves in east Texas, according to regulatory filings. The company was expected to pay dividends of about 10 per cent to 11 per cent a year.

Bank of Nova Scotia, RBC Capital Markets and CIBC World Markets were leading the sale.