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BRP to Raise CN$262.3 Million with Initial Public Offering

Thu, 23 May 2013

Bombardier Recreational Products announced an initial public offering price of CN$21.50 per share when the company goes public.

At that price ($20.83 in U.S. dollars) for 12,200,000 shares, the IPO would generate proceeds of CN$262.4 million (US$254.8 million) for BRP, the company behind Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Evinrude & Johnson outboard engines, and Can-Am‘s ATVs, side-by-sides and Spyder three-wheeled roadsters.

BRP’s stock will be listed on the Toronto Stock Exchange, trading under the symbol “DOO”. The IPO closes May 29. As previously announced, the IPO will offer subordinate voting shares, while the company’s current owners, a consortium of the Bombardier and Beaudoin families, Bain Capital and the Québec government’s public pension plan manager Caisse de dépôt et placement du Québec, will hold on to 90% of the company’s equity.

At $262.4 million, this would represent the largest IPO in Canada this year. BRP plans to use the proceeds from the IPO to pay down the company’s debt.

The IPO is underwritten by BMO Capital Markets, RBC Capital Markets, UBS Securities Canada Inc., Citigroup Global Markets Canada Inc., acting as joint bookrunners, and including Wells Fargo Securities LLC, CIBC World Markets Inc., Desjardins Securities Inc., Scotia Capital Inc., National Bank Financial Inc. and Robert W. Baird & Co. Incorporated.

[Source: BRP]

By Dennis Chung

See also: BRP to go Public with IPO, 2012 US Motorcycle Sales Results – Industry Reports 2.6% Increase, 2008-2012 Can-Am Spyder Fuel Vapor Leak Recalls Expands to US.