Revitalized Stelco looks to raise $200M in IPO
by The Canadian Press
Stelco announced its intention to return to the stock market last month with plans to spend the money raised to fund capital expenditures and pension obligations
Stelco’s operations on the Hamilton harbour PHOTO: Getty Images/ByMPhotos
The steelmaker is expecting to price its shares between $16 and $18 per share. If an over-allotment option is exercised in full, the offering will increase to $230 million.
Stelco announced its intention to return to the stock market last month with plans to spend the money raised to fund capital expenditures and pension obligations.
The IPO comes after two restructurings under court protection from creditors, the most recent completed this past summer.
Bedrock Industries acquired the company’s operations in the most recent process and restored the Stelco name.
It is expected to hold a roughly 86.5 per cent interest in the company following the offering, based on the midpoint of the estimated price range for the shares. If the over-allotment option is exercised in full, the stake will be 84.8 per cent.
