Toyco and entertainment company Spin Master has officially entered into an underwriting agreement for an initial public offering.
The IPO consists of 12,225,000 subordinate voting shares at US$13.82 apiece (CDN$18), which would raise US$168,949,500 million (CDN$220,050,000 million) in cash for the Toronto, Canada-headquartered company.
As part of the process, Spin Master has filed a supplemented PREP prospectus with the regulatory authorities in each of the 10 Canadian provinces.
The offering is being made through a group of underwriters, with RBC Capital Markets and TD Securities acting as co-lead and bookrunners. CIBC World Markets, National Bank Financial, BMO Nesbitt Burns, HSBC Securities Canada, Barclays Capital Canada, GMP Securities, Cormark Securities and Dundee Securities are also part of the underwriting team.
The underwriters have an overallotment option to buy up to an additional 1,833,650 subordinate shares at the offering price within 30 days of the offering closing (on or about July 31), which would bring in an extra US$25,341,043 million (CDN$33,007,500 million).
Spin Master has received conditional approval to list its subordinate voting shares on the Toronto Stock Exchange (TSX) under the symbol TOY.
The global entertainment company has been on a roll of late, recently nabbing master toy rights for upcoming 3D-animated film The Secret Life of Pets, hit Russian property Masha and the Bear and the rebooted Powerpuff Girls TV series.
Spin Master was also recently tapped to distribute new Teletubbies toys across Canada, the US, France, Germany, Belgium, Netherlands and Luxembourg in 2016, and earlier this year, Spin Master and Nelvana Enterprises launched girls preschool property Little Charmers.