Refco Inc. has consummated its initial public offering of 26,500,000 shares of common stock at $22.00 per share. Refco sold 12,500,000 shares, and 14,000,000 shares were sold by existing stockholders. An additional 3,975,000 shares were sold by Refco pursuant to the exercise of the underwriters’ option to purchase such shares to cover over-allotments.
Proceeds from the 12,500,000 shares sold by Refco not subject to the over- allotment option will be used to redeem outstanding indebtedness and for general corporate purposes. Proceeds from the exercise of the underwriters’ over-allotment option will be paid as a dividend to Refco’s stockholders of record prior to the offering.
Credit Suisse First Boston LLC, Goldman, Sachs & Co. and Banc of America Securities LLC were the joint book-running managers for the IPO. Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Sandler O’Neill & Partners, L.P. and HSBC Securities (USA) Inc. were the co-managers.