The cancellation of the initial public offering of Griffiths Energy International Inc. means that Canada's somnolent IPO market remains just that.
Griffiths, had it gotten done on schedule in 2011, likely would have been the third-largest IPO of last year, and certainly the largest since markets got rough in late summer.
The company was said to be seeking in the range of $300-million, which would have left it trailing only the June offering of $500-million by Gibsons Energy and the $342-million debut of Parallel Energy Trust, which happened in spring.
However, as reported by the Globe and Mail, Griffiths has put the IPO on ice amid questions about an internal probe.
Griffiths has shifted gears and is moving to raise a good chunk of the money it needs with another private placement round. The energy producer is seeking $200-million.
Still, there's a good chance that should the private succeed, and the internal probe come back with a result that doesn't spook the market, the IPO paperwork will be refiled and a Griffiths offering will be back on. However, given the private placement in the works, that IPO may not be as big as previously planned.