The investment brokerage intends to offer $384.8 million, or around 19 million shares, of its Class A common stock, while controlling stockholder RCAP Holdings will offer $101.3 million worth, or around 5 million shares, of common stock from its own share holdings. Shares have been priced at $20.25 a share.
Underwriters have also been allowed a 30-day over-allotment option to purchase up to an additional $72.9 million shares.
Pulling share prices lower, the company said gross proceeds will be less than an estimation provided in its preliminary prospectus a week earlier. In the prospectus, it was estimated RCS Capital would receive $446.1 million, while RCAP Holdings would receive $148.7 million. RCS Capital would have received an additional $89.2 million if the underwriters exercised their greenshoe option.
Net proceeds of the offering will be used to fund certain pending acquisitions, meet debt obligations under its credit facilities, pay fees in connection with certain private offerings, pay outstanding indebtedness on a current pending acquisition, and for other general corporate purposes.
Bank of America, Barclays, Citigroup, JMP Securities and JPMorgan are acting as joint bookrunners for the offering.