Fairfax prices Northbridge IPO

Fairfax Financial Holdings’ Northbridge Financial Corporation initial public offering (IPO) of 13,400,000 common shares will be priced at $15.00 per. The result would be gross proceeds of $201 million.Northbridge Financial combines Fairfax’s existing Canadian p&c companies, and is one of the country’s largest general insurers based on gross written premiums.Northbridge will keep about $19 million of the net proceeds from the offering “for general corporate purposes and to contribute to the funding of potential future acquisitions”, with the remaining $170 million going to Fairfax. Fairfax will own about 74% of outstanding shares following the offering, prior to an exercise of the underwriters’ over-allotment option.Underwriting the offering are BMO Nesbitt Burns Inc.and Scotia Capital Inc. as co-leaders, with CIBC World Markets Inc., RBC Dominion Securities Inc. and TD Securities Inc. also part of the syndicate.Trading is set to start on May 23 on the TSX, under the symbol NB, with the IPO expected to close on May 28.