Report: Stelco Hopes to Raise CA$150 Million Through IPO
09/29/2017 - Three months after emerging from creditor protection, the new owner of Canada’s Stelco will look to take the company public.
Stelco announced on Wednesday that it has filed a preliminary prospectus with Canadian securities regulators. The company said the number of shares it will sell and the price of those shares hasn’t been determined. It also said it will use the proceeds to develop new products, enhance its production capabilities and pay certain pension and employee retirements benefits obligations.
The Globe and Mail newspaper reported that the company hopes to raise at least CA$150 million.
"Our operations currently have substantial excess capacity and we believe this excess capacity is accessible with limited capital investment," the company said in the prospectus, according to The Globe and Mail.
In a joint statement, Ontario provincial Finance Minister Charles Sousa and Economic Development Minister Brad Duguid said the news is a welcome development.
"We believe that this development underscores the confidence that the new owners have in Stelco's operations and its workers. The stated intentions of the owners to maintain their involvement and commit to new capital investments in the company's operations is particularly welcome," they said, according to The (Hamilton, Ont.) Spectator.
The Globe and Mail newspaper reported that the company hopes to raise at least CA$150 million.
"Our operations currently have substantial excess capacity and we believe this excess capacity is accessible with limited capital investment," the company said in the prospectus, according to The Globe and Mail.
In a joint statement, Ontario provincial Finance Minister Charles Sousa and Economic Development Minister Brad Duguid said the news is a welcome development.
"We believe that this development underscores the confidence that the new owners have in Stelco's operations and its workers. The stated intentions of the owners to maintain their involvement and commit to new capital investments in the company's operations is particularly welcome," they said, according to The (Hamilton, Ont.) Spectator.
