Canada's Hydro One IPO prices near high end of range

Thu Oct 29, 2015 5:09pm EDT
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By John Tilak

TORONTO Oct 29 (Reuters) - Ontario electric utility Hydro One Ltd's initial public offering was priced at C$20.50 per share on Thursday, raising C$1.66 billion ($1.26 billion) and marking one of the biggest IPOs in Canadian history.

The pricing suggested demand for a roughly 15 percent stake in the province's largest electric utility was high.

Earlier this month, the government of Ontario outlined plans to sell up to 89.25 million Hydro One shares in an IPO that was seen pricing in the range of C$19 to C$21 a share, pegging the overall value of the company between C$11.31 billion and C$12.5 billion.

The shares, which will list on the Toronto Stock Exchange under the ticker symbol "H", are expected to begin trading on Nov. 5.

The company saw "extraordinarily strong demand," said Ed Clark, chair of the Ontario premier's advisory council on government assets. "The offering was significantly oversubscribed."

"This has been textbook run. There's tremendous interest," he said in an interview. "The market is obviously enthusiastic about it."

Clark, the former chief executive of Toronto-Dominion Bank , added that he was trying to build a strong bloc of investors and had received interest from both retail and institutional investors. ($1 = 1.3166 Canadian dollars) (Reporting by John Tilak, editing by G Crosse)