Nov. 23 (Bloomberg) -- The Royal Canadian Mint raised C$600 million ($573 million) in an initial public offering of securities tied to its gold reserves, more than double its IPO target, according to two people familiar with the sale.
The mint initially sought to raise C$250 million from selling units in Canadian or U.S. dollars at C$20 or $19.29 each, the Ottawa-based firm said. Strong demand from institutional and individual investors drove up the size of the sale, said the people, who declined to be named because terms aren’t public.
Gold, which has risen for 10 consecutive years, reached a record $1,923.70 an ounce on Sept. 6 in New York. The metal has risen 19 percent this year, as investors seek a haven amid Europe’s debt crisis and plunging stock prices.
Each exchange-traded receipt represents ownership in physical gold bullion held in custody of the Royal Canadian Mint. Proceeds from the sale will be used to buy gold, and the buyers of the receipts will own the metal rather than a stake in the mint, according to an Oct. 28 statement.
The units will be listed on the Toronto Stock Exchange under the ticker MNT after the sale closes on Nov. 29, the people said.
The largest IPO in Canada this year was led by Toronto-Dominion Bank’s TD Securities and National Bank Financial. The amount of the sale was reported earlier by the Globe and Mail.
Royal Canadian Mint spokesman Alex Reeves declined to comment.
To contact the reporter on this story: Doug Alexander in Toronto at email@example.com