Industrial-Alliance Issues an Additional 2.5 Million Common Shares
The Underwriters Exercise their Over-allotment Option
Industrial-Alliance Life Insurance Company announced today that its underwriters have decided to exercise their over-allotment option for 2.5 million common shares granted to them under the terms of the Company’s Initial Public Offering (IPO), which closed on February 10, 2000. The purpose of exercising this option is to cover the additional requests of investors expressed at the time of Industrial-Alliance’s IPO.
The net proceeds of this additional offering total $37.5 million. This amount will be added to the Company’s working capital and used for general corporate purposes. The issue of these additional shares brings the number of outstanding Industrial-Alliance common shares to 37.6 million.
Industrial-Alliance shares officially began trading on the Toronto Stock Exchange (TSE) last February 10 under the ticker symbol IAG, as a result of its conversion from a mutual insurance company to a capital stock insurance company.
The underwriters syndicate consists of BMO Nesbitt Burns Inc., Merrill Lynch Canada Inc., RBC Dominion Securities Inc., Scotia Capital Inc., National Bank Financial Inc.,TD Securities Inc., CIBC World Markets Inc., Griffiths McBurney & Partners, HSBC Securities (Canada) Inc., Newcrest Capital Inc. and Fox-Pitt, Kelton Inc. Founded in 1892, the Industrial-Alliance Group is the seventh largest life and health insurance company in Canada. With assets under management of more than $13 billion, the Group operates throughout Canada and offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, investment funds, mortgage loans and other financial products.
This news release shall not constitute an offer to sell, or the solicitation of an offer to buy the common shares in any jurisdiction. Industrial-Alliance common shares have not been and will not be registered under the United States Securities Act of 1933, and may not be offered or sold in the United States without obtaining exemption from the requirements of such Act.
- 30 -
Senior Director, Public Affairs