Global financial information firm Markit has boosted the size of its planned initial public offering, and set the price for the deal.
The firm said Thursday it will sell 53.5 million common shares in the IPO, which is up by about 17% from initial expectations, at $24 per share. All of the shares are being sold by existing shareholders, so the company will not receive any proceeds from the offering.
Additionally, the underwriters have an eight million share over-allotment option for 30 days. The IPO is expected to close on June 24, subject to customary closing conditions. And, when it does, the shares will be listed on the NASDAQ Global Select Market under the symbol “MRKT.”
The underwriting syndicate includes RBC Capital Markets and TD Securities, along with major Wall Street firms, BofA Merrill Lynch, Barclays, Citigroup, Credit Suisse, Deutsche Bank Securities, Goldman, Sachs & Co., HSBC, J.P. Morgan, Morgan Stanley, UBS Investment Bank, BNP Paribas, Jefferies, and RBS, acting as joint book-running managers for the IPO.
The Canada Pension Plan Investment Board (CPPIB) says it will acquire 10.4 million shares of Markit in the IPO.
CPPIB’s total investment will be US$250 million, which will give it approximately a 6% stake in the company. The ownership position will also give the pension manager the right to nominate one director to the company’s board.
Scott Lawrence, vice-president & head of relationship investments at the CPPIB, said, “This investment fits well with Relationship Investments’ strategy to provide strategic, long-term capital to leading public companies, like Markit, where CPPIB can participate in the future success of the company and help create greater value through an ongoing partnership,” added Lawrence.