May 29 (Bloomberg) -- BRP Inc., maker of snowmobiles and three-wheeled motorcycles, soared 16 percent from its initial offering price in its first day of trading in the Toronto Stock Exchange.
BRP rose to C$25, compared with an IPO price of C$21.50 at 4 p.m. in Toronto. The Valcourt, Quebec-based firm fell 1 percent from the last close of C$25.25 after five days of trading on an if-and-when-issued basis.
BRP sold 12.2 million subordinate voting shares for gross proceeds of about C$262.3 million ($253.1 million), the company said in a release today. The cash will be used to pay down debt.
There is also an overallotment option for an additional 1.83 million shares to be sold at C$21.50, for additional proceeds of C$39.3 million.
The company makes sports and recreational vehicles including Ski-Doo snowmobiles, Sea-Doo watercraft, and Spyder three-wheeled motorcycles.
Bank of Montreal led a group of bankers managing the IPO including Royal Bank of Canada, UBS Securities Canada Inc. and Citigroup Global Markets Canada Inc.
To contact the reporter on this story: Eric Lam in Toronto at email@example.com