TORONTO - Retailer Hudson’s Bay Co said on Tuesday its initial public offering will raise some $365 million, a sum that is well below the company’s original target of about $400 million.
The retailer, in a brief statement late on Monday, said its offering of 21.48 million shares priced at $17 apiece - at the bottom of the company’s already lowered range of $17 to $18 a share. The offering price pegs its market capitalization at just over $2 billion.
The company, which owns two venerable chains, Lord & Taylor in the United States and Hudson’s Bay in Canada, had originally aimed to have the offering price at between $18.50 and $21.50 a share.
HBC said the Toronto Stock Exchange has conditionally approved its listing, and the stock will start trading on the closing of the offering, set for Nov. 26.
Founded in 1670, Hudson’s Bay was a fur trading business long before it operated department stores, running trading posts across what is now Canada. It went private in 2006, as shoppers fled to specialty retailers and U.S.-based heavyweights such as Wal-Mart Stores Inc.
NRDC Equity Partners, controlled by U.S. real estate investor Richard Baker and his family, bought out HBC’s other investors in 2008, and integrated it with Lord & Taylor, which operates 48 stores across the United States.
HBC said the offering will result in gross proceeds to the company of about $250 million and proceeds to the selling shareholders of about $115 million. Net proceeds to the company will be used to repay debt, the company said.