IPL Plastics Inc., a portfolio company of Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité des travailleurs du Québec (F.T.Q.), has filed an amendment to its preliminary prospectus in connection with its proposed initial public offering (IPO) of common shares.
IPL Plastics Inc. intends to issue 9,375,000 and 11,111,111 common shares at price of between $13.50 and $16.00 per share for gross proceeds of $150 million. In addition, IPL will issue 2,085,678 shares with gross proceeds used to redeem the Class B common shares tendered under its share buy-back option.
Immediately after the closing of the offering, between 11,460,678 and 13,196,789 common shares (or between 13,179,780 and 15,176,307 common shares if the over-allotment option granted is exercised in full) and 39,314,394 Class B common shares will be issued and outstanding.
IPL Plastics expects to raise up to $210.9 million, assuming shares to be priced at $16 and over-allotment option exercised in full.
IPL Plastics has applied to list its common shares on the Toronto Stock Exchange (TSX) under the symbol “IPLP”. The TSX has not conditionally approved the listing.
CDPQ will own 14,683,023 Class B common shares for an approximate interest of between 28.0% and 28.9%. Fonds de solidarité will have an approximate interest of between 6.0% and 6.2% through ownership of 3,149,216 Class B common shares.
The Class B common shares will be automatically converted into common shares, on a one-for-one basis, on the expiry of the six-month period following the closing date and will be listed for trading upon conversion.
BMO Capital Markets, CIBC World Markets Inc., and RBC Capital Markets act as joint bookrunners, together with National Bank Financial Inc., J&E Davy, Goodbody Stockbrokers UC, Desjardins Securities Inc., GMP Securities L.P., HSBC Securities (Canada) Inc., Laurentian Bank Securities Inc. making up the underwriting syndicate.
Stikeman Elliott LLP and McCarthy Tétrault LLP are acting as legal counsel to IPL and the underwriters.