Canada Pension Plan Investment Board, Toronto, is purchasing US$250 million in common shares of Markit Ltd. in the financial data provider's initial public offering, said spokeswoman May Chong.
The C$219.1 billion (US$202.4 billion) pension fund is purchasing 10.4 million shares at a price of US$24 a share, giving the pension fund an approximate 6% ownership stake.
Markit spokesman Alex Paidas said the stock started trading on Thursday. At the close of trading on Thursday, the share price had gone up to US$26.70 per share.
“We are pleased to become a cornerstone investor in Markit, and we see this investment as the start of a long-term partnership with Markit's experienced management team and board,” said Scott Lawrence, CPPIB's vice president and head of relationship investments, in a news release. “Markit is a global leader in providing financial information services with a highly customer-centric approach and strong growth opportunities.”
CPPIB will also have the right to nominate one director for appointment to Markit's board of directors.
The IPO is trading on Nasdaq under the symbol MRKT. It raised US$1.3 billion in its IPO at the US$24 share value. The original prospectus has Markit at an equity value of US$4.3 billion.
Markit's Mr. Paidas said the firm had no further comment.
Bloomberg contributed to this story.