An initial public offering has been completed by a Vancouver construction company, in order to bid for larger projects and enter new markets through corporate acquisitions.
An initial public offering has been completed by a Vancouver construction company, in order to bid for larger projects and enter new markets through corporate acquisitions.
Seacliff Construction Corp. completed an Initial Public Offering (IPO) of 7,692,308 common shares on April 24, at a price of $13.00 per common share for total proceeds of about $100 million.
Subsequently, it acquired, indirectly, a 100 per cent interest in Dominion Construction and Canem Systems, the two subsidiaries of Seacliff Holdings Ltd.
“There are two reasons why we went public. The first reason is to enable us to grow the business, so that we could satisfy our long-term goals over the next five years,” said Bill Crarer, Seacliff’s chief executive officer.
“We needed a stronger balance sheet to allow us to pursue larger projects.”
Crarer explained that a stronger balance sheet would allow Seacliff to go after projects that are private public partnerships.
He noted that the use of P-3 projects in B.C. and Alberta represents a new trend in these markets.
“The IPO enables us to pursue larger projects immediately. The cash is in the bank,” he said.
Seacliff is currently bidding on a P3 package for the construction of 18 schools in Alberta.
“The second reason for going public is to pursue strategic acquisitions in current markets and expand business into new markets,” he said.
According to Crarer, Seacliff wants to expand their business into specific geographic areas, including Vancouver, Edmonton and Saskatchewan.
The IPO is primarily an indirect secondary offering by the principal shareholders of Seacliff.
The company will use about $47 million of the net proceeds of the offering, as partial consideration to acquire, indirectly, The Dominion Company Inc. and Canem Holdings Ltd. from the principal shareholders.
Seacliff will also issue common shares to the principal shareholders as the balance of the consideration for the purchase of Dominion and Canem.
It will use the remainder of the net proceeds of the offering, about $45 million, for general working capital purposes and acquisitions.
The company, which is one of the largest construction companies in Western Canada, provides general contracting construction services and electrical contracting services to clients in both the public and private sectors.
The majority of their business is derived from institutional, commercial and light industrial construction projects.
Seacliff has its headquarters in Vancouver, B.C. and operates 16 locations in B.C., Alberta, Saskatchewan and Manitoba, as well as one location in Northwestern Ontario.
Its business is conducted through two business units: Dominion Construction, a general contractor, and Canem Systems, an electrical contractor.
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