Two high profile initial public offerings have hit big trouble, as the sale of a stake in the Whistler Blackcomb met weak demand that led the backers to slash the price, and poor demand for a stake in the 407 toll highway prompted the backer of that sale to pull it entirely.
Whistler Blackcomb Holdings is now shooting to sell $300-million of shares at $12.50 to $13 apiece, down from $14 to $15. That puts the yield at 7.5 to 7.8 per cent, up from the original yield target at 6.5 per cent to 7 per cent. Retail demand for the IPO is very light, according to one source.
Sponsor SNC-Lavalin Group yanked the planned $900-million initial public offering of TransAxio Highway Concession after investors balked at the price. SNC and TransAxio were asking investors to pay a big premium to acquire a stake in the 407 toll highway in Toronto.