Oaktree to raise $345M from Neo Performance Materials in IPO

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By Ted Liu

Neo Performance Materials Inc. intends to raise $300 million for its proposed initial public offering (IPO) by way of secondary offering at a price between $19.00 and $22.00 per share.

Neo Performance Materials will not receive any proceeds from the offering. OCM Neo Holdings (Cayman), L.P., an affiliate of funds and accounts managed by Oaktree Capital Management, L.P., is the sole selling shareholder.

Oaktree has granted the underwriters an over-allotment option for additional 15% of the offering shares for additional gross proceeds of $45 million, if the over-allotment is exercised in full.

OCM Neo Holdings (Cayman) owns 37,996,100 common shares or 95% of the outstanding common shares.

Upon completion of the offering based on the midpoint of the estimated price range, Oaktree will, directly and indirectly, own or control an aggregate of 23,361,954 common shares, representing approximately 58.6% of the issued and outstanding common shares, or 21,166,832 shares, 53.1% of the issued and outstanding common shares, if the over-allotment is exercised in full.

Scotiabank and RBC Capital Markets are acting as joint bookrunners for the offering, and Cormark Securities is acting as co-lead underwriter for the offering. 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 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.

photo credit: Neo Performance Materials