Q: Hi, What's your opinion for subscribing to the secondary issue at $227.10 ? I know, IFC is a company liked by 5i ( Bal Portfolio ). Is it a reasonable price to start a position ?
Thanks
"CDPQ announced today that it will sell 2,312,000 common shares ("Common Shares") of Intact Financial Corporation (TSX: IFC) representing approximately 1.3% of the issued and outstanding Common Shares of IFC as of February 26, 2024 (the “Offering”).
The Common Shares are being sold on an underwritten block trade basis at a gross price of $227.10 per share "
Thanks
"CDPQ announced today that it will sell 2,312,000 common shares ("Common Shares") of Intact Financial Corporation (TSX: IFC) representing approximately 1.3% of the issued and outstanding Common Shares of IFC as of February 26, 2024 (the “Offering”).
The Common Shares are being sold on an underwritten block trade basis at a gross price of $227.10 per share "
5i Research Answer:
We think it makes sense; the discount is decent, and with a secondary no new shares are issued so there is no dilution. CDPQ will retain an 8.9% interest so remains committed. We think it is an opportunity to buy.