Private equity group Cerberus Capital Management LP is selling a stake in Toronto-based plastics automotive supplier ABC Technologies Holdings Inc. through an initial public offering.
The number of common shares to be sold and the price per common share have not yet been determined, a Jan. 26 news release said.
Cerberus expects to sell C$255 million (US$199.9 million) worth of shares at an initial public offering price of C$12 (US$9.40) to C$15 (US$10.94) per share, according to the preliminary prospectus filed by ABC Technologies Jan. 26.
ABC will not receive any of the proceeds from the IPO. The shares will be listed on the Toronto Stock exchange.
Scotia Capital, BMO Nesbitt Burns and J.P. Morgan Securities Canada are listed as lead underwriters for the IPO. ABC expects to pay a more than $14 million underwriters fee, 5.5 percent of the gross proceeds from the IPO.
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.