Neo Performance Materials closes $200M IPO

Neo Performance Materials Inc. (TSX: NEO) has completed its initial public offering (IPO) by way of secondary offering of common shares by OCM Neo Holdings (Cayman), L.P., an affiliate of Oaktree Capital Management, L.P.

Pursuant to the offering OCM sold 11,115,000 common shares at a price of $18.00 per share for gross proceeds of $200,070,000.

The common shares of Neo Performance Materials have commenced trading today on the Toronto Stock Exchange (TSX) under the symbol “NEO”. The stock opened at $17.47 and traded at $17.01 as at 10:12AM EST with a trading volume of 263,878 shares.

Immediately following the closing of the IPO, Oaktree Capital will, directly and indirectly, own or control an aggregate of 26,881,100 common shares, representing approximately 67.4% of the issued and outstanding common shares.

The underwriters were granted an over-allotment option to purchase up to an additional 1,667,250 shares from OCM, at the offering for additional gross proceeds of approximately $30 million if the over-allotment option is exercised in full.

The offering was made through a syndicate of underwriters led by Scotiabank and RBC Capital Markets acting as joint bookrunners, and Cormark Securities Inc. acting as co-lead underwriter, and includes CIBC World Markets Inc., Barclays Capital Canada Inc., Canaccord Genuity Corp., GMP Securities L.P. and Raymond James Ltd.

Fogler, Rubinoff LLP and Stikeman Elliott LLP act as legal counsels to Neo Performance Materials and the underwriters respectively.

Neo Performance Materials is a global leader in the innovation and manufacturing of rare earth- and rare metal-based functional materials, which are essential inputs to high technology, high growth, future-facing industries. The business of the Company is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. The Company is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, US; and Beijing, China. The Company operates globally with sales and production across 10 countries, being Japan, China, Thailand, Estonia, Singapore, Germany, United Kingdom, Canada, United States, and South Korea.

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.