PE-backed mountain resorts operator Intrawest prices IPO at $12/share – Reuters

Mountain resorts operator Intrawest Resorts Holdings Inc raised about US$188 million in an initial public offering after its shares were priced at US$12.

The company, controlled by private equity firm Fortress Investment Group LLC, priced its IPO of 15.62 million shares significantly below its expected price range of US$15-US$17 per share. Based on the number of shares outstanding, Intrawest would be valued at US$540 million.

Out of the total offering, Intrawest is offering 3.12 million shares while Fortress is selling the rest. After the offering, Fortress’s stake would drop to about 65 percent.

Denver-based Intrawest, the largest heli-skiing adventure operator in the world, was taken private by Fortress in 2006 for about US$2.8 billion, including debt. The company’s Canadian offices are in Vancouver and Banff, Alberta.

Intrawest, which operates in three major segments, namely mountain, adventure and real estate, has interests in seven mountain resorts in North America. It also operates Canadian Mountain Holidays, a heli-skiing adventure company.

It runs Club Intrawest, a private vacation club with eight locations across the U.S., Canada and Mexico.

Intrawest’s net loss narrowed to US$296.7 million from US$336 million for the year ended June 30. Revenue rose 2 percent to US$524.4 million in the same period.

Goldman Sachs, Credit Suisse, Deutsche Bank Securities and BofA Merrill Lynch were the lead underwriters to the offering.

Shares fell 8.2 percent to $11.02 in mid-morning trade.

(This story has been edited by Kirk Falconer, Editor, peHUB Canada)

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