Stingray aims to sell shares for between $5.50-$6.25 in IPO: Reuters

(Reuters) – Stingray Digital Group Inc, a Canadian business-to-business music provider and media company, plans to price its shares between $5.50 to $6.25 in its initial public offering, according to a term sheet released on Monday.

The Montréal-based company plans to raise $120 million through the offering on the Toronto Stock Exchange, with the proceeds used to pay down debt.

The company plans to sell 10.2 million to 13.2 million shares, with private equity investors Novacap and Telesystem Ltd to sell 8.6 million to 9 million shares in a secondary offering, according to securities filings.

The IPO is expected to close during the week of June 1.

Founded in 2007, Stingray is headed by Eric Boyko, who owns a 23.35 percent stake in the company. Canadian private equity firm Novacap owns a 29.44 percent stake, with Canadian media and tech holding company Telesystem owning a 42.11 percent interest.

The share offering is being run by National Bank Financial, GMP Securities and BMO Capital Markets, which have the option of purchasing an additional 15 percent of the offering upon closing.

(Reporting By Allison Lampert; Editing by Chris Reese)

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

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