Ritchie Bros. Auctioneers Incorporated

Ritchie Bros. Auctioneers Incorporated

November 08, 2005 16:25 ET

Ritchie Bros. Auctioneers Announces Secondary Offering of Common Shares

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2005) - Ritchie Bros. Auctioneers Incorporated (TSX:RBA)(NYSE:RBA) today announces the filing of a registration statement on Form F-10 with the U.S. Securities and Exchange Commission and a preliminary short form prospectus and related documents with the securities regulatory authorities in all provinces of Canada. The preliminary prospectus and registration statement relate to a secondary offering in the United States and Canada of a total of 2,173,913 common shares at a price of US$39.80 per common share, representing an aggregate offering of US$86,521,737.40. The shares are being sold by Globo Investments Ltd. ("Globo"), a company controlled by David E. Ritchie, the Chairman of Ritchie Bros.

The offering is being underwritten on a "bought deal" basis and, as such, the Company and Globo have today entered into an agreement with a syndicate of underwriters led by Raymond James Ltd.

In addition, Globo has granted the underwriters an option, exercisable no later than 48 hours prior to the closing of the offering, to purchase an additional 326,087 common shares at the same price as described above.

Following the closing of the offering, Mr. Ritchie will beneficially own or control approximately 9.8% of Ritchie Bros.' outstanding common shares, assuming the option is exercised in full by the underwriters. Ritchie Bros. will not receive any proceeds from the offering. Closing is expected on or about November 23, 2005.

When available, copies of the U.S. final prospectus relating to the offering may be obtained from Raymond James & Associates, 880 Carillon Parkway, St. Petersburg, Florida 33716, and copies of the Canadian final short form prospectus relating to the offering may be obtained from Raymond James Ltd., 40 King St. West, Suite 5400, Toronto, Ontario M5H 3Y2.

A registration statement relating to the common shares has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. The common shares may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Contact Information

  • Ritchie Bros.
    Robert S. Armstrong
    Vice-President Finance,
    Chief Financial Officer and Corporate Secretary
    (604) 273-7564