Ontario's provincial government is seeking to raise as much as $1.7-billion from selling a 15 per cent stake in its Hydro One Ltd. utility, an amount less than the initial guidance in April from Premier Kathleen Wynne's government.
Hydro One plans to sell 81.1 million shares for $19 to $21 apiece in the initial public offering of Ontario's largest electricity transmission and distribution system, according to regulatory filing Friday. The provincial government said six months ago that it would seek as much as $2.25-billion.
Hydro One is being marketed to institutional investors this month, with plans to complete the initial share sale by November. At least 25 per cent of the IPO will be sold to retail investors, the province said last month. Hydro One has about 1.2 million customers and $23-billion of assets, according to regulatory filings. Money raised from the sale will go toward debt repayment, transit and infrastructure, the government said.
Royal Bank of Canada and Bank of Nova Scotia are leading a group of 16 banks on the sale.