Strong Spin Master IPO leads banks to snap up further shares, exercising over-allotment option
Toy maker's total proceeds from IPO reach $253M with further sale
TORONTO—Spin Master Corp. has announced the underwriters of its initial public offering have exercised their over-allotment option and elected to purchase an additional 1,833,750 shares of the Toronto toy maker. The sale will raise an additional $33 million for Spin Master and bring the total proceeds from its July IPO to $253 million.
Spin Master said the net proceeds from the over-allotment option are expected to be used to repay the company’s debt.
The IPO was made through a syndicate of underwriters led by RBC Capital Markets and TD Securities Inc. and includes several other large Canadian banks.
Spin Master shares performed well after the initial offering, climbing to as high as 3 per cent above the $18 IPO price. Market turmoil has checked the company’s share price, however, dragging shares to a $18.14 close Aug. 25