Watch for the Sprott Asset Management initial public offering to be priced early Thursday, with underwriters likely to put in the pin at $10 a share, giving the hedge fund a $1.5-billion valuation.
The Sprott IPO garnered a strong retail following, based in part on the incredible 10-year track record of its flagship fund, and decent institutional investor demand over the course of a three-week marketing campaign.
From the start, underwriters said Toronto-based Sprott was targeting a $200-million offering priced at between $9.50 and $10.50 a share. Cormark Securities and TD Securities are leading the share sale.
None of the proceeds of this financing are going to the company, as the shares are being sold by the 71-employee firm's executives. A number of these individuals, including 63-year-old founder Eric Sprott, are expected to re-invest part of the cash they receive in the firm's funds, which hold $6.9-billion of client assets.
The Sprott IPO will be the largest public company debut of the year, by a wide margin. The biggest initial offering of the first quarter was a $50-million financing for a company named Pristine Power.
