Barrick Gold Floating New Stock Issue

By Eric Volkman – Oct 31, 2013 at 9:46PM

NYSE: GOLD

Barrick Gold

Market Cap

$30B

Today's Change

(1.68%) $0.28

Current Price

$16.98

Price as of April 18, 2024, 4:00 p.m. ET

The company hopes to reap nearly $3 billion from the offering.

Barrick Gold (GOLD 1.68%) is hoping to mine some capital from the market with a new common stock offering. The company is floating 163.5 million of its shares at a price of $18.35 per share in an underwritten public flotation. Additionally, the company's underwriters have been granted a 30-day purchase option for up to an additional 24.5 million shares to cover overallotments.

Barrick Gold said it mainly plans to use the issue's estimated net proceeds of around $2.9 billion to retire debt.

The underwriting syndicate is led by Royal Bank of Canada's RBC Capital Markets, Barclays, and GMP Securities.

At the moment, Barrick Gold has 1 billion shares outstanding, and its stock most recently closed at $19.39 per share.

Fool contributor Eric Volkman has no position in any stocks mentioned. Nor does The Motley Fool. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.