Canadian Underwriter

Hub expects US$68.6 million from U.S. IPO

May 30, 2002   by Canadian Underwriter

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Broker consolidator Hub International (TSE: HBG) is hoping to raise US$68.6 million when it launches an initial public offering on the New York Stock Exchange next month.
The company says it will sell 5 million shares for between US$14 and US$16 each. Of the US$68.6 million Hub expects to raise, US$47 million will go to pay down existing debt. The rest will go to working capital and other “general corporate purposes”, potentially including further acquisitions.
Hub has grown significantly since its start 4 years ago, with the merger of 11 Canadian brokerages. It has since added 78 offices and expanded into the U.S. In its filing with the U.S. Securities Exchange Commission, the company notes that about 93% of its growth since 1998 is due to acquisition.
Underwriting the IPO are J.P. Morgan, Cochran Caronia, Stephens Inc., BMO Nesbitt Burns and Baker Watts, who have the option of buying 750,000 additional shares for overallotments.
After the initial offering, the company would have 26.7 million outstanding shares, adding up to a market value of US$373-426 million under the expected share price range.
Hub will trade on the NYSE under the symbol HBG.

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