Canada Pension Plan Investment Board plans to invest up to $450 million to take about a 10 percent stake in financial information company Markit Ltd. through its U.S. initial public offering.
Markit is seeking to raise as much as $1.14 billion with the sale of 45.7 million shares for $23 to $25 apiece, according to a regulatory filing on June 3. Markit’s equity value would be about $4.5 billion at the high end of the IPO range, based on 178.9 million shares to be outstanding, the London-based company’s filings show.
Canada’s largest pension fund manager has indicated its interest to invest up to $450 million in the IPO through a private placement and to nominate a director for the company’s board, the documents show.
Canada Pension, which manages the retirement savings of 18 million people in every province except Quebec, declined to comment on the Markit IPO, Linda Sims, a spokeswoman for the Toronto-based fund said today.
Lance Uggla, chief executive officer or Markit, was formerly an executive at Toronto-Dominion Bank. Markit competes with Bloomberg News parent Bloomberg LP in selling information to the financial industry.
Markit derives about half of its revenue from selling financial data such as prices and indexes, with the rest split between processing trades for over-the-counter derivatives, currencies and loans, and the sale of enterprise software platforms, according to the filing.