The Canada Pension Plan Investment Board (CPPIB) plans to invest in financial information services company Markit Ltd.’s initial public offering (IPO).
In a regulatory filing with the Securities and Exchange Commission, Markit notes that the CPPIB has indicated an interest in purchasing up to US$450 million ($493 million) of its common shares at the IPO price.
“However, because indications of interest are not binding agreements or commitments to purchase, the underwriters could determine to sell more, less or no shares to CPPIB, and CPPIB could determine to purchase more, less or no shares in this offering,” the filing states. “If CPPIB purchases common shares in this offering, it will have the right to nominate, in consultation with our nominating and governance committee, one director for appointment to our board of directors.”
The company expects its IPO to be priced between US$23 and US$25 per common share, which would value the company at about US$4.5 billion.
Markit has more than 3,000 institutional customers globally, including banks, hedge funds, asset managers, accounting firms, regulators, corporations, exchanges and central banks.
Canadian Lance Uggla founded the company in 2003 and is its chairman and CEO. He was previously the global head of credit trading and head of Europe and Asia for TD Securities. Uggla started his career at Wood Gundy.
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