Cardinal Energy Ltd. sought to raise as much as CAD250 million (USD238 million) in its initial public offering (IPO). Cardinal Energy is an oil producer in the Canadian province of Alberta. 

According to a report by Bloomberg, Cardinal Energy was planning to file for the sale of its shares next week. The Calgary-based company would price shares at CAD10 to CAD10.5 apiece, paying a dividend yield of 6.5%, Bloomberg sources said. 

Investment banks Canadian Imperial Bank of Commerce and Royal Bank of Canada will be leading the public offering, Bloomberg said. 

Cardinal Energy, under the leadership of chairman and chief executive officer Scott Ratushny, produces 5,000 to 6,000 equivalent barrels of oil from Alberta wells daily. The company is also expected to close an acquisition deal regarding the assets from Penn West Petroleum Ltd. by the end of the year, the report stated. 

Cardinal Energy's IPO would be the largest offering in the Canadian energy sector this year, following Oryx Petroleum Corp.'s CAD250.5 million IPO in May, Bloomberg said.