Hydro One makes solid debut on Toronto stock market in biggest IPO in 15 years
Future offerings will net greater proceeds benefiting all Ontarians, finance minister says
The company's stock closed at $21.62, up 5.46 per cent or $1.12 from the IPO price of $20.50, with more than 18 million shares sold.
Finance Minister Charles Sousa said he was pleased to see the offering of Hydro One shares was being "well-received" on the markets.
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"Every uptick on the market is an indication the future offerings will net even greater proceeds benefiting all Ontarians," Sousa said.
"It is not too late to stop the next block of shares from going to market," said NDP Leader Andrea Horwath. "Selling 15 per cent is bad, but selling 60 per cent is a disaster."
Stephen Lingard, senior vice-president at investment firm Franklin Templeton Solutions, said it's not a guarantee that electricity rates will go higher as a result of the privatization of Hydro One.
"So it's not an automatic that prices go up, but certainly that would be a concern initially for ratepayers."
Three more offerings, roughly the same size, are expected to follow, which are anticipated to generate a total of $9 billion.
Royal Bank of Canada (TSX:RY) and Bank of Nova Scotia (TSX:BNS), who are acting as underwriters in the utility's public debut, also have an option to purchase an additional 8.15 million shares, which would bring proceeds from the IPO to a total of $1.83 billion.