The firm is aiming to raise US$150 million in gross proceeds from the share sale
After emerging from the ashes of bankruptcy protection, Canadian steel producer Stelco Holdings is now planning to list publicly.
According to Reuters, the steel producer filed a preliminary prospectus with securities regulators in Canada for a proposed initial public offering (IPO).
Owned by US restructuring firm Bedrock Industries, Stelco is seeking to raise US$150 million in the share sale. The firm is expected to have a market value of about US$1 billion.
In a statement, Stelco disclosed that the management has yet to determine the number of shares to be put for sale and their prices. However, the firm noted that the proceeds of the IPO would be allocated for capital investments, mainly to develop new products. A portion of the proceeds will also be apportioned as payment to certain pension benefits trusts.
In June, Stelco was able to settle its ballooning debts. It was at the same time when Bedrock Industries completed the acquisition of the group.
This wasn't the first bankruptcy protection the group has emerged from in its lifetime. In 2007, it overcame its first protection when US Steel Corp acquired the company for US$1.1 billion.
Its IPO endeavours came after two restructurings under court protection from its creditors, a separate report from BNN said. In its most recent restructuring, the firm managed to eliminate US$3 billion in debt and US$1.4 billion in pension and benefit obligations.
Steel industry analyst Charles Bradford told BNN that the group are faced with challenges including the planned imposition of tariffs on non-US steelmakers.
"We don't know yet for example what's going to happen," Bradford said, noting that it would be up to the management to show that they can deliver.
For more of Wealth Professional's latest industry news, click here.
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According to Reuters, the steel producer filed a preliminary prospectus with securities regulators in Canada for a proposed initial public offering (IPO).
Owned by US restructuring firm Bedrock Industries, Stelco is seeking to raise US$150 million in the share sale. The firm is expected to have a market value of about US$1 billion.
In a statement, Stelco disclosed that the management has yet to determine the number of shares to be put for sale and their prices. However, the firm noted that the proceeds of the IPO would be allocated for capital investments, mainly to develop new products. A portion of the proceeds will also be apportioned as payment to certain pension benefits trusts.
In June, Stelco was able to settle its ballooning debts. It was at the same time when Bedrock Industries completed the acquisition of the group.
This wasn't the first bankruptcy protection the group has emerged from in its lifetime. In 2007, it overcame its first protection when US Steel Corp acquired the company for US$1.1 billion.
Its IPO endeavours came after two restructurings under court protection from its creditors, a separate report from BNN said. In its most recent restructuring, the firm managed to eliminate US$3 billion in debt and US$1.4 billion in pension and benefit obligations.
Steel industry analyst Charles Bradford told BNN that the group are faced with challenges including the planned imposition of tariffs on non-US steelmakers.
"We don't know yet for example what's going to happen," Bradford said, noting that it would be up to the management to show that they can deliver.
For more of Wealth Professional's latest industry news, click here.
Related stories:
How investors can gain exposure to driverless cars
Inside Canada’s newest capital pool company
