Sprott Physical Silver Trust IPO

TORONTO, Oct 29 (Reuters) – Sprott Inc (SII.TO: Quote, Profile, Research, Stock Buzz), the Canadian fund manager specializing in resource investments, said on Friday that it planned to raise $500 million in the initial public offering of the Sprott Physical Silver Trust.

The offering will consist of 50 million units priced at $10 each.  The trust, which will be managed by Sprott Asset Management, will invest and hold nearly all its assets in silver bullion.

It will be listed on the NYSE Arca and the Toronto Stock Exchange under the symbols “PSLV” and “PHS.U,” respectively.

The offering was made simultaneously in the United States and Canada through a syndicate of underwriters led by Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) and RBC Capital Markets (RY.TO: Quote, Profile, Research, Stock Buzz).

As part of the offering, the underwriters have been granted an overallotment option to purchase up to an additional 7,500,000 units at $10 each.

The Canadian syndicate includes TD Securities Inc (TD.TO: Quote, Profile, Research, Stock Buzz), Canaccord Genuity Corp, National Bank Financial Inc (NA.TO: Quote, Profile, Research, Stock Buzz), BMO Capital Markets (BMO.TO: Quote, Profile, Research, Stock Buzz), HSBC Securities (Canada) Inc, GMP Securities LP, Wellington West Capital Markets Inc, and Mackie Research Capital Corp.

Sprott did an initial public offering of the Sprott Physical Gold Trust in March, which raised $400 million. The value of that trust crossed the $1 billion mark at the end of last month as gold prices soared. [ID:nN30139489]

($1=$1.02 Canadian) (Reporting by John McCrank; Editing by Lisa Von Ahn)

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