Valcourt, Québec - BRP has entered into an underwriting agreement for the initial public offering of 12.2 million subordinate voting shares at a price of $21.50 per share.
Based on this price, the BRP’s market capitalization will be about $2.5 billion.
BRP has obtained a receipt for its final base PREP prospectus filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the prospectus is available on the website of SEDAR, Canada’s document filing and retrieval system.
The IPO will generate gross proceeds to BRP of about $262.3 million. The company intends to use the net proceeds from the offering to repay indebtedness under the company’s term facility.
The Toronto Stock Exchange has conditionally approved the listing of BRP’s subordinate voting shares subject to fulfilling the exchange’s customary requirements. BRP’s subordinate voting shares will trade under the symbol “DOO.” The closing is scheduled for May 29, subject to customary closing conditions.
The underwriters have also been granted an overallotment option to purchase up to an additional 1.83 million subordinate voting shares from BRP at a price of $21.50 per share for additional gross proceeds of $39,345,000 if the option is exercised in full. The overallotment option can be exercised for a period of 30 days from the closing date.
If the underwriters exercise the overallotment, BRP will use the additional net proceeds for working capital and general corporate purposes.
BRP began filing paperwork for an initial public offering in mid-April.
Posted by Arlo Redwine