CPI Card Group Inc., which makes payment cards for lenders including Bank of America Corp. and American Express Co., cut the size of its initial public offering for a second time to $150 million and pared its share price amid choppy equity markets.
CPI sold 15 million shares for $10 apiece, below its initial amount and price target, according to sales document acquired Thursday by Bloomberg. The company is expected to start trading Friday on the Nasdaq Stock Market under the symbol PMTS and on the Toronto Stock Exchange as PNT. That’s a day later than originally planned.
“Due to heightened volatility in the market, CPI’s IPO did not price as close to the offer as originally planned,” Chief Executive Officer Steve Montross said Thursday in an e-mailed statement. "We are working with our underwriters with an expected close of today."
CPI and certain shareholders initially sought to raise $300 million from selling 17.6 million shares for $16 to $18 each, according to earlier filings. That was reduced Wednesday to $200 million for selling 16 million shares for $12 to $13 apiece, before being cut again Thursday.
The card maker is 91 percent-owned by funds of Vancouver- based private-equity firm Tricor Pacific Capital Inc., according to the prospectus.
Bank of Montreal, Goldman Sachs Group Inc. and Canadian Imperial Bank of Commerce led the sale.