In a market focused on the re-IPO of AIG , the IPO of Glencore and a new stock sale from GM , you can add another massive secondary offering to the already crowded calendar for Wall Street’s underwriters.
Mosaic, the giant fertilizer company, will hit the road this week to drum up buying for a 107 million share secondary offering of its stock, which is expected to be priced next week, according to people close to the deal. It will be for more than $7 billion—a huge secondary offering in a market poised to be hit with other huge offerings.
The shares in question stem from a plan announced earlier this year by the giant private company Cargill to split off its 64 percent stake in Mosaic from the company. Cargill said it would exchange 107 million of its Mosaic shares with its debt holders, which is the stock that will soon be priced.
It also said it planned to exchange 186 million Mosaic shares for Cargill shares held by other Cargill shareholders, primarily charitable trusts formed through the estate of Margaret Cargill, who died in 2006.
Those shares are also slated to be sold over time. The vote of Mosaics shareholders on this deal is scheduled for this Wednesday, when the road show is slated to begin.
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