Stelco Holdings Inc. is looking to raise $ 200 million in its initial public offering, according to documents filed with securities regulators.
The steelmaker is expecting to price its shares between $ 16 and $ 18 per share. If an over-allotment option is exercised in full, the offering will increase to $ 230 million.
Stelco announced its intention to return to the stock market last month with plans to spend the money raised to fund capital expenditures and pension obligations.
Read more: Stelco files for IPO to fund enhancement of steelmaker’s production capabilities
The IPO comes after two restructurings under court protection from creditors, the most recent completed this past summer.
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Bedrock Industries acquired the company’s operations in the most recent process and restored the Stelco name.
It is expected to hold a roughly 86.5 per cent interest in the company following the offering, based on the midpoint of the estimated price range for the shares. If the over-allotment option is exercised in full, the stake will be 84.8 per cent.