Orbit Garant IPO Canada

The Canadian markets may be witnessing problems, but that is not going to stop the IPO of Orbit Garant, which is a big large Canadian-based drilling company servicing the mining industry.

The Orbit Garant IPO or initial Public offering is expected to hit the Toronto Stock Exchange very soon, despite the volatile stock markets.
What is the size of the Orbit Garant IPO?
The Orbit Garant IPO is expected to raise a total of C$60 million.

What is the business of Orbit Garant?
Orbit, offers underground and surface drilling services through its 116 drilling rigs. The company was created in 2007 from the acquisition of Forage Orbit Inc. by Forages Garant & Freres Inc.

What is the price range or price band of the Orbit Garant IPO?
The price band for the Orbit Garant IPO is set in the range of C$5 to C$ 5.75 per share.

Where will the fund raised from the Orbit Garant IPO be used?
Proceeds from the offering will be used to pay off the company's existing credit agreement, the purchase price, working capital and for other adjustments in connection with the agreement for the acquisition of Forage Orbit.

Is it the right time for Orbit Garant IPO to come to the stock markets?
Experts say no. The reason is that the recently concluded Sprott IPO, which was heavily oversubscribed is trading below its IPO offer price. It is the first time in last seven years that the Canadian markets have seen a downtime. However, Orbit Garant IPO has a strong backup in the backdrop of the rising metal prices and minig sector in the commodities markets. It has prestigious client list which includes - Goldcorp Inc. (GG), Xstrata PLC ( XTA.LN), Iamgold Gold Corp. (IMG) and Agnico-Eagle Mines Ltd. (AEM).

What are the business valuations of the Orbit Garant IPO as compared to other similar companies?
A typical example that can be cited is that of the Forbes Energy Services Ltd. Riding the wave of rising and record-setting crude prices, the Texas-based company, a provider of drilling services to oil and gas companies primarily operating onshore in Texas, priced its IPO of 21.4 million shares late last week at C$7 a share for a total of C$ 150 million, making it one of the biggest IPOs so this year in Canada.
If one goes by that performance specific to the sector, then the Orbit Garant IPO will surely be one of the best investments one can make. Also to note that investing in such turbulent times for a long horizon of 5 to 10 years will ensure that investors get the stock for cheap and reap the benefits in the long run.

Let’s see how this IPO from Orbit Garant performs in the markets.

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