ABC Technologies Holdings Inc. has filed its final prospectus and announced pricing for its initial public offering as private equity group Cerberus Capital Management LP sells a stake in the company.
The IPO will raise an estimated C$110 million (US$86.8 million).
ABC Group Canada LP, which is owned by an investment fund managed by Cerberus, agreed to sell an aggregate of 11 million common shares at a price of C$10 (US$7.87) per share, a Feb. 16 news release said.
That is a lower price than the company had announced in a preliminary prospectus filed Jan. 26. The earlier plan was to price the IPO at C$12 (US$9.40) to C$15 (US$10.94) per share.
Scotiabank, BMO Capital Markets and J.P. Morgan lead a group of underwriters for the IPO including TD Securities Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Desjardins Securities Inc., and Laurentian Bank Securities Inc., which have been granted an over-allotment option to purchase up to an additional 1.65 million common shares from Cerberus.
According to the final prospectus filed by ABC Technologies on Feb. 16, if the over-allotment option is exercised in full, the total price to the public will be C$126.5 million (US$99.6 million) and the proceeds to Cerberus will be C$126.5 million (US$99.6 million).
The shares will be listed on the Toronto Stock Exchange.
Cerberus is expected to hold 41.5 million common shares, or approximately 79 percent of the issued and outstanding shares of ABC following the closing of the IPO expected to occur on or about Feb. 22.
ABC will pay a C$6.9 million (US$5.5 million) underwriters fee.
ABC has both blow molding and injection molding for products for automotive HVAC systems, interiors, exteriors, fluid management and air induction systems among others. It has 6,150 employees globally.
In injection molding, ABC has 3,500 employees at 12 plants with US$625 million in sales in the region to rank No. 9 in Plastics News' annual ranking. It is No. 15 in PN's annual ranking of blow molders with US$425 million in annual sales.