MCAP Said to Go Ahead With $211 Million IPO as Soon as Wednesday

  • Toronto-based mortgage lender to make final decision today
  • MCAP would be Canada’s largest IPO since Hydro One in October

Canadian mortgage finance company MCAP Corp. plans to go ahead with its C$275 million ($210 million) initial public offering as soon as Wednesday as global stocks rebound following a sell off from the U.K. decision to leave the European Union, according to people familiar with the matter.

Toronto-based MCAP will make a decision on the IPO later Tuesday, said the people, who asked not to be identified because the details aren’t public. Gord Herridge, a spokesman for MCAP, declined to comment.

MCAP and shareholders MCAN Mortgage Corp. and Otera Capital CADCAP Inc. aim to sell 13.1 million to 15.3 million shares for C$18 to C$21 apiece and list on the Toronto Stock Exchange, according to June 10 offering documents. If the sale goes ahead as planned, MCAP will be Canada’s largest IPO since electric utility Hydro One Ltd. raised C$1.83 billion in October.

MCAP, with about C$55 billion of mortgages under administration, is Canada’s second-largest mortgage finance company, according to a May regulatory filing. MCAP originates and underwrites mortgages, and funds them by selling the loans to institutional investors including banks, pension funds, trust companies and insurers, and then collects service fees. Royal Bank of Canada and Bank of Montreal are leading the sale.

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