Iamgold sold 34.2 million share at $8.75 each after an overnight marketing blitz led by investment banks Canaccord Capital and TD Securities. There were a total of 16 dealers in the selling syndicate - Iamgold is trying to send cash to a great many friends on the Street.
The financing played out at a 7-per-cent discount to the closing price of Iamgold Monday, in line with what companies have accepted on recent bought-deal financings. This deal was first put forward as a $275-million offering, so Iamgold was able to raise more than expected.
Iamgold is changing hands at $8.65 early Tuesday, below the price of the offering, as bullion prices weaken and equity markets rise.
There were a series of gold company stock sales in recent months, as gold prices rallied past $1,000 an ounce. The financing activity slowed when metal prices retreated - Eldorado Gold pulled a planned $275-million offering in late February in the face of lukewarm investor interest.
A number of other mining companies, including Barrick Gold, are expected to sell shares if institutional investors show a continued interest in upping their exposure to precious metals plays. Gold is changing hands Tuesday at $900.90 (U.S.) an ounce, down $16.