NEW YORK, N.Y. – CHC Group Ltd. shares fell Friday after the helicopter operator’s initial public offering raised $310 million, below its initial expectations.
The IPO of 31 million shares priced at $10 per share. CHC stock lost 55 cents, or 5.5 per cent, to $9.45 in morning trading.
The company had expected to sell 29.4 million shares for $16 to $18 each, but reduced that price to $12 to $14 a share on Thursday.
CHC is the parent of CHC Helicopter SA, the world’s largest commercial helicopter operator for the offshore oil and gas industry. Its shares are trading under the ticker symbol “HELI.”
CHC will use the proceeds of its IPO to repay debt and for general corporate purposes. The underwriters will have an option to buy 4.7 million more shares.