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Whistler Blackcomb ‘over-allotment' option exercised

Blog by Nick Swinburne | November 16th, 2010

IPO underwriters purchase 3.75 million shares of Whistler Blackcomb Holdings
The banking and securities companies that underwrote last week's initial public offering (IPO) of Whistler Blackcomb Holdings this week exercised their option to purchase an additional 3.75 million shares in the company from Intrawest.

When shares in the company went up for sale to the public on Nov. 9, the underwriters — held out the option of purchasing an “over-allotment” of the shares. In a statement issued on Friday (Nov. 12), Whistler Blackcomb Holdings officials announced that the underwriters planned to exercise their option to purchase another 3.75 million shares at the original price of $12 per share.

The over-allotment purchase was scheduled to close on Tuesday (Nov. 16), reducing Intrawest's stake in the company to approximately 24 per cent, officials said in a statement released to CNW Newswire.

The over-allotment was made through a syndicate of underwriters led by CIBC and RBC Capital Markets and including Scotia Capital Inc., BMO Capital Markets, TD Securities Inc., Goldman Sachs Canada Inc., Canaccord Genuity Corp., Desjardins Securities Inc., HSBC Securities (Canada) Inc. and Raymond James Ltd.

Since the shares went up for sale on the Toronto Stock Exchange, they have traded in a narrow range, with a low of $11.90 and a high of $12.50. They were trading at $12.06 at the end of trading on Monday (Nov. 15).