ADESA Launches Initial Public Offering of 6.25 Million Shares
ADESA Inc. on June 16 announced an initial public offering (IPO) of 6.25 million shares of common stock at $24 a share. With that offering ADESA becomes the nation’s only wholesale auto auction company that is publicly held. Shares closed at $25.25 ADESA also said it has issued $125 million in bonds and secured $525 million in credit commitments from 29 commercial banks. ADESA will use net proceeds from the IPO to repay debt. The company operates 53 auction sites and 27 salvage auction sites in the United States and Canada. Before the IPO, ADESA was a wholly owed subsidiary of ALLETE Inc. of Duluth, Minn. ALLETE officials say they expect to complete the separation within four months by distributing the remaining equity interest in ADESA to ALLETE shareholders.