Hudson's Bay to raise about C$365 mln via IPO
TORONTO Nov 20 (Reuters) - Canadian retailer Hudson's Bay Co said on Tuesday its initial public offering will raise some C$365 million ($366.6 million), a sum that is well below the company's original target of about C$400 million.
The retailer, in a brief statement late on Monday, said its offering of 21.48 million shares priced at C$17 apiece - at the very bottom of the company's already lowered range of C$17 to C$18 a share. The offering price pegs its market capitalization at just over C$2 billion.
The company, which owns two venerable chains, Lord & Taylor in the United States and Hudson's Bay in Canada, had originally aimed to have the offering price at between C$18.50 and C$21.50 a share.
Founded in 1670, Hudson's Bay was a fur trading business long before it operated department stores, running trading posts across what is now Canada. It went private in 2006, as shoppers fled to specialty retailers and U.S.-based heavyweights such as Wal-Mart Stores Inc.
NRDC Equity Partners, controlled by U.S. real estate investor Richard Baker and his family, bought out HBC's other investors in 2008, and integrated it with Lord & Taylor, which operates 48 stores across the United States.
HBC said the offering will result in gross proceeds to the company of about C$250 million and proceeds to the selling shareholders of about C$115 million. Net proceeds to the company will be used to repay debt, the company said.