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.
