TORONTO Nov 20 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
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.