Postmedia Owners Seeking Way Out, Say Analysts

The parent company of the National Post has decided to list its shares on the Toronto Stock Exchange without an initial public offering.

Postmedia’s decision to list its shares without an IPO is considered highly unusual, and observers say it’s likely a sign that the company couldn’t find an investment bank either willing or able to underwrite a public offering. Postmedia, which owns the National Post and a roster of local papers across the country, was sold to an international group of creditors last summer, and analysts speculate that part of the purchase deal included a guarantee to list the company’s stocks on the TSX by this summer. That may have forced the corporation to go ahead with the listing despite being unable to find an underwriter. Analysts say the unusual strategy is part of the creditors’ plan to give up ownership of the media chain.