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Member, Beacon International Group, Ltd.
CHICAGO--Hub International Ltd. said it expects to raise between about $68.6 million and $79.1 million through its previously announced initial public offering in the United States.
In its May 30 registration statement with the Securities and Exchange Commission, Hub said it plans to sell 5 million common shares on the New York Stock Exchange for between $14 and $16 per share. Hub, whose insurance brokerage operations are based in Toronto and Chicago, already is listed on the Toronto Stock Exchange. The IPO includes a provision to offer the underwriters for the offering an option to buy an additional 750,000 shares.
About $47 million of the offering's net proceeds will be used to repay existing debt, the broker said. The balance will be used for working capital and for general corporate purposes, which may include acquisitions, Hub said.
Separately, Hub announced that it has completed the sale of its underwriting subsidiaries--Old Lyme Insurance Co. of Rhode Island Inc. and Old Lyme Insurance Co. Ltd.--to Fairfax Inc. for $43.5 million. Fairfax is a subsidiary of Fairfax Financial Holdings Ltd. in Toronto, which is Hub's largest shareholder. The proceeds of the sale will be used to repay debt, Hub said.
Hub said in a statement that the sale aligns it with other major publicly held brokers, which take advantage of underwriting opportunities through affiliations or contingency agreements, rather than through direct ownership of insurers.