- Ontario government raised C$1.66 billion in utility stake sale
- Bank overallotment could lift IPO proceeds to C$1.83 billion
Hydro One Ltd. rose as much as 4.9 percent in its trading debut after the Ontario power utility raised C$1.66 billion ($1.26 billion) in one of Canada’s largest initial public offerings.
Shares traded at C$21.30 at 9:32 a.m. Thursday in Toronto, compared with an IPO price of C$20.50. Ontario’s provincial government on Oct. 29 sold a 13.6 percent stake in the province’s largest electricity distributor and transmission utility. Proceeds may rise to C$1.83 billion if underwriters led by Royal Bank of Canada and Bank of Nova Scotia exercise an option to sell an additional 10 percent of the offering, making it Canada’s largest IPO in 15 years.
Ontario Premier Kathleen Wynne said in April that she aimed to sell as much as 60 percent of Toronto-based Hydro One over the next four to five years, raising C$9 billion for debt repayments and infrastructure and transit in Canada’s most-populous province.