LPL Investment Holdings released details of the financial impact of its $445 million initial public offering launched in November. The details offer a partial preview of its forthcoming fourth-quarter operating results.
Setting aside shares offered from selling stockholders, underwriting discounts and commissions, and estimated offering expenses, the company took $37.2 million in net proceeds from the transaction.
The company also noted a one-time compensation expense amounting to $222 million, after certain advisors exercised their share options after the IPO’s closing. In connection with those transactions, the company recorded a tax benefit of $8.7 million.
LPL also expects to get a tax deduction of about $383 million and related benefit of $150.2 million, stemming from two sources. There is the exercise of non-qualified stock options, and the exercise of incentive stock options and subsequent sale of common stock. About $144.6 million of the tax savings as a result of the refund of taxes paid in 2008, 2009 and 2010. The company will realize other $92.7 million over the next 18 to 24 months as it carries the tax losses forward.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access