TORONTO – Sleep Country Canada Holdings expects to generate more than $300 million in gross proceeds from the company’s return to public markets.
Canada’s largest mattress retailer said Friday that it will issue 17.65 million shares at a price of $17 per share.
The offering is made through a syndicate of underwriters led by TD Securities and BMO Nesbitt Burns.
An over-allotment of 2.6 million shares could raise an additional $45 million.
Existing shareholders, including management, will own 53 per cent of the company, however their stake could slip to 46 per cent if the over-allotment is exercised in full.
The offering is expected to close July 16 when Sleep Country’s shares will begin to trade under the symbol (TSX:ZZZ).
Sleep Country owns and operates 215 stores across Canada under its own name and the Dormez-Vous? banner.
It was listed on the Toronto Stock Exchange as an income trust from 2003 to 2008, when it was bought out for $356 million by Birch Hill Equity Partners and Westerkirk Capital.
The company said it plans to grow its yearly revenue from the $406 million it posted in the 12-months ended in March to between $575 million and $640 million annually.
The IPO does not include American retailer Sleep America, which Sleep Country bought in 2006. The company said it sold off its American division in January in order to focus on the Canadian market.