Industrial-Alliance Becomes a Capital Stock Company
Raymond Garneau Opens the Market at the Toronto Stock Exchange
Raymond Garneau, Chairman of the Board and Chief Executive Officer of Industrial-Alliance Life Insurance Company, opened the market today to start the official trading of Industrial-Alliance shares on the Toronto Stock Exchange (TSE). Official trading of Industrial-Alliance shares comes one week after their listing created a strong demand. A listing ceremony with senior officials from the TSE and Industrial-Alliance, at Stock Market Place, commemorated the event. Barbara Stymiest, President and Chief Executive Officer of the TSE, welcomed Industrial-Alliance Group to the TSE.
This morning´s ceremony coincided with the closing of the company´s initial public offering and the issuance of letters patent of conversion. These last two steps mark the end of the demutualization process. Industrial-Alliance is now a publicly traded capital stock company and listed on the TSE under the ticker symbol IAG.
“Today is a turning point in Industrial-Alliance´s history,” declared Mr. Garneau. “It marks the beginning of a new era for the Company. In less than one year, we reached our objective of demutualizing the company and take great pride in this achievement. We look forward to meeting new challenges and the opportunities we face as a public company.” Industrial-Alliance is the largest Quebec-based Canadian company to be listed on the TSE since the realignment of the stock markets.
Distribution of the cheques and ownership statements
Last Thursday, Industrial-Alliance raised $340 million through its initial public offering of 21.6 million shares. By mid-March, this money will be distributed to almost 570,000 policyholders that have elected to receive cash under the demutualization proposal. The amount to be paid to each policyholder is based on the number of shares allotted and the initial public offering share price of $15.75. The initial share price was established when the underwriting agreement between the Company and the underwriters was signed on February 3.
Starting February 28, Industrial-Alliance will be mailing the share ownership statements to the some 130,000 policyholders that chose to keep their shares – a total of 13.5 million shares. The total number of shares outstanding of Industrial-Alliance is 35.1 million.
Issuance of additional shares
In addition, the underwriters will have the option to purchase up to 2.5 million additional common shares to cover over-allotments. This option can be exercised within 60 days following the closing date of Industrial-Alliance´s initial public offering.
The Industrial-Alliance Group is the seventh largest life and health insurance company in Canada. Building on more than a century of experience, 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.
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Public Relations Officer
(418) 684-5000, extension 5329