Underwriters of Focus Financial Partners Inc.'s IPO have exercised in full their option to purchase an additional 2,432,432 of the company's class A common shares at the IPO price of $33.00 per share, less underwriting discounts and commissions.
As a result, the New York-based wealth manager will issue a total of 18,648,649 shares in the offering. The aggregate offering is expected to close July 30, subject to customary closing conditions.
Focus expects to receive approximately $615.4 million of gross proceeds from the offering, including proceeds from the exercise of the underwriters' option.
The company plans to use a portion of the net proceeds to redeem outstanding limited liability company units in its unit, Focus Financial Partners LLC, from certain existing holders. The remaining net proceeds may be contributed to Focus Financial Partners LLC in exchange for units. Focus Financial Partners LLC will use such net proceeds to reduce debt under its credit facilities, as well as for acquisitions and general corporate business purposes.
Goldman Sachs & Co. LLC, Bank of America Merrill Lynch, KKR Capital Markets, BMO Capital Markets, RBC Capital Markets and SunTrust Robinson Humphrey are acting as joint book-running managers for the offering.
Fifth Third Securities, Keefe Bruyette & Woods, MUFG, Raymond James & Associates Inc., Regions Securities LLC and William Blair are acting as co-managers.