TORONTO – The $1.66-billion Hydro One raised for a 13.6 per cent stake in the company in advance of its Thursday IPO makes it one of the most valuable share offerings since Manulife Financial went public for $2.49 billion in 1999.
Here’s a look back at some of the biggest IPOs in Canada over the last 15 years:
Sun Life Financial: $1.8 billion in 2000. Soon after Manulife’s blockbuster IPO, Sun Life Financial raised $1.8 billion from its own share offering. The insurance company listed on the Toronto market in March 2000, one of a wave of so-called demutualizations by insurers in 1999 and 2000. Other insurers that went public around that time include Clarica, which Sun Life took over in 2001, and Canada Life Financial, which was purchased by Great-West Lifeco in 2003. The stock debuted below $14 and rose to more than $55 by 2007. On Wednesday, it closed at $44.67.
PrairieSky: $1.46 billion in 2014. Calgary-based energy giant Encana Corp. raised $1.46 billion in a spring 2014 IPO when it spun off 40 per cent of its PrairieSky Royalty subsidiary, which pays dividends based on its rights to oil and gas exploration areas in Alberta. After debuting on the open market at $37 in May and hitting a peak of $42.39 in July 2014, PrairieSky closed on Wednesday at $26.30. Oil prices have fallen by roughly 60 per cent since July 2014.
Athabasca Oil: $1.35 billion in 2010. The energy company is one of the big players in Alberta’s oilsands industry. It owns more than 1.6 million hectares in northwestern Alberta. In 2014, Athabasca Oil completed the sale of its Dover project to PetroChina for $1.18 billion. After debuting around $15, the stock fell to $10 within six weeks. Their stock has traded below $2 since the end of July.
Franco-Nevada: $1.1 billion in 2007. The Toronto-based mining royalties company was taken private in 2002 and went public in 2007, raising $1.1 billion on the strength of its portfolio including Barrick Gold Corp.’s Goldstrike property and Stillwater Mining Co.’s Stillwater property. The company maintains a portfolio of more than 200 active projects around the world as well as a further 160 undeveloped oil and gas assets. Since its debut in December 2007, Franco-Nevada’s stock has increased from around $15 to $65.90 at the closing bell on Wednesday.
Yellow Pages Income Fund: $1 billion in 2003. The Yellow Pages Income Fund was owned by BCE, the Ontario teacher’s pension fund and New York-based private equity firm Kohlberg Kravis Roberts & Co. before it went public. In 2010, the fund was converted to a dividend-paying corporate structure and now trades around $17 as Yellow Pages Ltd.