Hudson's Bay to raise C$365 million via IPO

Tue Nov 20, 2012 2:42pm EST
 

By Euan Rocha and Allison Martell

TORONTO (Reuters) - Canada's Hudson's Bay Co (HBC.TO: Quote) is set to raise C$365 million ($367 million) in its initial public stock offering, well below the department store operator's original target of about C$400 million.

HBC has priced the offering of 21.48 million shares at C$17 apiece - at the bottom of the company's already lowered range of C$17 to C$18. The offering price pegs its market capitalization at about C$2 billion.

The shares began trading on the Toronto Stock Exchange on Tuesday on a "when-issued" basis, sliding 1.5 percent from the offer price to C$16.75. The stock is trading under the symbol "HBC," the same as it did before going private in 2006.

Trading volume in the stock was significant, with more than 3 million shares changing hands by 1400 ET, making HBC one of the 10 most actively traded stocks on the TSX.

"This gives you an indication of where people would buy and sell the stock today ... But it is only the more speculative people trading in the market right now, not a full complement of players," said one trader, who does not own any position in the stock but asked to remain unnamed.

All trades in the stock executed ahead of the official close of the offering have to be matched and settled, as and when the offering officially closes. If the offering fails to close for any reason, all these trades will be considered as null and void.

HBC said in a statement late on Monday that the TSX has conditionally approved its listing. The stock is slated to start trading officially on the anticipated closing date of November 26.

The company, which owns two venerable chains, Lord & Taylor in the United States and Hudson's Bay in Canada, originally aimed for an offering price of C$18.50 to C$21.50 a share.   Continued...