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Knowlton Development Sets IPO at 57.1M Shares; Sees Pricing at $13-$15 Each

Dow Jones Newswires ·  Sep 14, 2021 07:35

By Colin Kellaher

Beauty-industry supplier Knowlton Development Corp. on Tuesday said it plans to sell about 57.1 million shares at between $13 and $15 apiece in its initial public offering.

At the $14 midpoint of that range, the Longueuil, Quebec, company said it expects net proceeds of about $758 million, or roughly $871.7 million if the underwriters exercise an option to buy an additional 8.57 million shares.

Knowlton, which operates as kdc/one and provides manufacturing and packaging services to beauty and personal-care companies, said it has been responsible for co-developing more than 9,000 products.

In a filing with the U.S. Securities and Exchange Commission, Knowlton said it would have about 223.2 million shares outstanding after the IPO, assuming exercise of the overallotment option, for a market capitalization of around $3.13 billion at the $14-a-share pricing midpoint.

Private-equity firm Cornell Capital, which acquired a majority stake in Knowlton in 2018, will still own a 42% interest after the IPO, assuming exercise of the overallotment option, while Canadian pension giant Caisse de Depot et Placement du Quebec will own 17%.

Knowlton said it has been approved to list its shares on the New York Stock Exchange under the symbol KDC, adding that it has applied for a listing on the Toronto Stock Exchange.

Write to Colin Kellaher at colin.kellaher@wsj.com

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