Dick Smith Closes Bookbuild Within One Day As Institutional Investors 'Swamp' $500 Million IPO: Report

Electronics retailer Dick Smith has closed the institutional component of its $500 million IPO within the day, after bookrunners Goldman Sachs and Macquarie Group were “swamped with subscriptions”, the AFR reports.

Dick Smith is expected to float at $2.20 a share next month, with an institutional and retail bookbuild to take place next Thursday.

Private equity firm Anchorage Capital is expected to retain 20% of Dick Smith, with Dick Smith’s management team holding on to about 15% of shares.

A vast majority – 85% to 90% – of new shares will go to institutional investors, with today’s bookbuild raising $340 million, the Fin reports. Shares will be allocated tonight.

There’s more on the Fin.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.