Denver-based Gates Industrial Corp. provided more details Friday on the initial public offering it announced late last year.

The company, in a press release, said it plans to offer 38.5 million shares at a price of between $18 to $21 a share. Underwriters will have the option to purchase another 5.7 million shares at the offering price.

That would raise $693 million to $808.5 million, plus up to $121 million more if underwriters exercise their rights at the highest offering price. That would make the Gates Industrial IPO one of the largest stock offerings in 2018.

Gates Industrial said it plans to use the proceeds to pay down some of the $3.9 billion in debt it holds. Changes in the tax law cap how much interest is deductible on debt used to fund a leveraged buyout.

Shares of the company are approved to trade on the New York Stock Exchange under the ticker GTES. Among the investment banks leading the the offering are Citigroup, Morgan Stanley and UBS Investment Bank. A date has not been announced.

…read more

Source:: The Denver Post – Business

(Visited 1 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *