Bedrock-owned Stelco prices IPO to raise up to $230 mln

Canadian steel company Stelco Inc has priced its initial public offering on the Toronto Stock Exchange to raise gross proceeds of more than $200 million. Stelco has also granted to underwriters a greenshoe option that could generate an additional $30 million. Shares are expected to begin trading on November 3 under the symbol “STLC”. Hamilton, Ontario-based Stelco earlier this year emerged from creditor protection and closed a restructuring deal with U.S. private equity firm Bedrock Industries Group. With the IPO’s close, Bedrock is expected to hold 86.5 percent of the company’s outstanding shares, not including the greenshoe option.


Stelco Holdings Inc. Announces Pricing of Initial Public Offering

HAMILTON, ON, Nov. 2, 2017 /CNW/ – Stelco Holdings Inc. (“Stelco” or the “Company”) announced today the pricing of its initial public offering (the “Offering”) of 11,765,000 common shares (“Common Shares”) at a price to the public of $17.00 per Common Share (the “Offering Price”) for total gross proceeds of $200,005,000.

The Offering is being made through a syndicate of underwriters (the “Underwriters”) led by Goldman Sachs Canada Inc. and BMO Capital Markets and includes Credit Suisse Securities (Canada), Inc., J.P. Morgan, Scotiabank, TD Securities Inc., National Bank Financial Inc., and Oppenheimer & Co. Inc. Stelco has entered into an underwriting agreement in connection with the Offering, pursuant to which, among other things, Stelco has granted to the Underwriters an over­-allotment option (the “Over-Allotment Option”), exercisable in whole or in part at any time for a period of 30 days following the closing of the Offering, to purchase up to an additional 1,764,750 Common Shares at the Offering Price for additional gross proceeds of up to $30,000,750 if the Over-Allotment Option is exercised in full.

Stelco has received conditional listing approval of the Toronto Stock Exchange (the “TSX”) for the listing of the Common Shares being issued and sold pursuant to the Offering. Listing remains subject to Stelco fulfilling customary TSX requirements. The Common Shares are expected to commence trading on the TSX on an “if, as and when issued basis” on November 3, 2017 under the symbol “STLC”. The closing of the Offering is expected to occur on or about November 10, 2017 (the “Closing Date”) and is subject to customary closing conditions, including the receipt of all necessary regulatory approvals.

A final base PREP prospectus has been filed with, and a receipt has been issued by, the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada containing important information relating to the Common Shares. A copy of the final base PREP prospectus in respect of the offering is available on SEDAR at

This press release is not an offer of Common Shares for sale in the United States, and the Common Shares may not be offered or sold in the United States absent registration or an exemption from registration. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state of the United States.

About Stelco

Stelco is one of Canada’s leading integrated steel companies. It conducts its operations out of two facilities located in Hamilton and in Nanticoke Ontario. These operations produce high quality value-added hot rolled, cold rolled, coated sheet steel products used in the construction, automotive and energy industries across Canada and the United States.

For further information: Joel Shaffer, Longview Communications, 416.649.8006,

Photo courtesy of Stelco Inc