Ovintiv Announces Secondary Offer Of $15 Mln Of Shares From A Selling Stockholder

(RTTNews) - Ovintiv Inc. (OVV), an oil and gas company, Monday announced that MB Stock Trust, a Delaware statutory trust intends to sell $15 million of Ovintiv shares at a par value of $0.01 per share in a secondary offering.

MB Stock Trust will receive all the net proceeds from the transaction and the company Ovintiv is neither offering any common shares for sale nor is getting any proceeds.

"Ovintiv issued the shares to the Selling Stockholder on June 12, 2023 as part of the consideration for its acquisition of certain upstream oil and gas assets located in the Permian Basin from portfolio companies of funds managed by EnCap Investments L.P," the company said in a statement.

Additionally, the company announced that it will purchase $1 million Ovintiv common shares at a price per share equal to the price from the underwriter who will purchase them from the selling stockholder sold at the secondary offering.

J.P. Morgan is acting as the underwriter for this offering.

In pre-market, shares of Ovintiv are trading at $46.28 down by 2.20% on the New York Stock Exchange.