Oaktree’s Neo Performance Materials prices $200M IPO

Photo of author

By Ted Liu

Neo Performance Materials Inc. has filed the final prospectus in connection with its proposed initial public offering by way of secondary offering by by OCM Neo Holdings (Cayman), L.P., an affiliate of funds and accounts managed by Oaktree Capital Management, L.P.

The offering will consist of 11,115,000 common shares priced at $18.00 per share for gross proceeds to OCM of $200,070,000. Neo Performance has previously proposed to issue shares between $19 to $22 per share.

The Toronto Stock Exchange (TSX) has conditionally approved the listing of Neo Performance’s common shares.

Oaktree has granted the underwriters an over-allotment option for additional 15% of the offering shares for additional gross proceeds of $30 million, if the over-allotment is exercised in full.

Neo Performance Materials will have 39,878,384 common shares issued and outstanding. 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 or 25,213,850 common shares, representing approximately 63.2% 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. The underwriting syndicate also 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 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