Onex’s Emerald Expositions prices US $263.5 million IPO

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By Ted Liu

Emerald Expositions Events, Inc., a portfolio company of Onex Corporation (TSX: ONEX), has priced its proposed initial public offering (IPO) of 15,500,000 shares of its common stock at US $17.00 per share for gross proceeds of US $263.5 million (all figures in US dollars).

Emerald Expositions is selling 10,333,333 of those shares and Onex group is selling 5,166,667 shares for net proceeds of approximately $85 million, of which Onex’ share will be approximately $22 million including carried interest of $2 million. Onex group has granted underwriters a 30-day option to purchase up to 2,325,000 additional shares of common stock from the Onex Group.

Emerald Expositions’ common stock is expected to commence trading on April 28, 2017 on the New York Stock Exchange under the symbol “EEX”.

BofA Merrill Lynch, Barclays and Goldman, Sachs & Co. are acting as joint book-running managers and representatives of the underwriters; Citigroup, Credit Suisse, Deutsche Bank Securities, and RBC Capital Markets are acting as joint book-running managers; and Baird is acting as co-manager.

In June 2014, Onex Partners III acquired Emerald from Nielsen Holdings N.V. for $950 million with an equity investment of approximately $350 million

Following the closing of the offering, the Onex Group will continue to hold approximately 56.1 million shares of Emerald Expositions for an economic interest of 78%.

photo credit: Emerald Expositions Events