Months after it raised $316.3 million in its initial public offering, Pet Valu Holdings Ltd. (TSX: PET) announced on Tuesday that it has entered into an agreement to complete a secondary offering on a bought deal basis. The offering is reported to be for aggregate proceeds of $226 million.

The proposed offering will consist of 7 million common shares held by selling shareholders sold at $32.25 per share. The proceeds will go directly to the selling shareholders and the company will not receive any gains.

The agreement was made with a syndicate of underwriters led by RBC Capital Markets, Barclays, and CIBC Capital Markets, who also managed the firm’s IPO.

Upon the completion of the offering, the selling shareholders will collectively own 43,796,449 common shares representing 62.6% equity. At the time the IPO closed in June 2021, the selling shareholders had a 72.6% interest in the firm.

The offering is expected to close on September 28, 2021, subject to customary closing conditions.

Pet Valu Holdings last traded at $33.50 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.