Hudson's Bay Co. closes C$365 million IPO
Michael J. Knell -- Furniture Today, November 28, 2012
TORONTO — Hudson's Bay Company is once again a public company with the closing of its initial public offering of some 21.8 million shares at a price of C$17 each, which generated proceeds of C$365.1 million.
The company's proceeds will be used to pay down debt.
The IPO consisted of a treasury offering of 14.7 million shares as well as a sale of just under 6.8 million shares by their company's largest shareholder, which is controlled by Richard Baker, governor of HBC and chairman of the New York-based NRDC Equity Partners, which acquired HBC in 2008.
The common shares are listed on the Toronto Stock Exchange under the symbol HBC.
With the closing of the IPO, there are some 120 million common shares of HBC outstanding. Baker will control some 81.7% of the shares through various holding companies.
The underwriters have been granted an over-allotment option, giving them 30 days to purchase an additional 3.2 million shares from the selling shareholder.
The company operates three retail banners, two in Canada and one in the United States. The Canadian operations include the Bay, which has 90 stores across country and about C$2.2 billion in annual sales and Home Outfitters, a kitchen, bed and bath superstore with 69 outlets and C$300 million in sales. In the United States, the department store Lord & Taylor has 48 units and C$1.4 billion in sales.
All three banners sell furniture. The Bay also sells mattresses and major appliances.
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