TORONTO – Rarely has an IPO drawn as much political attention as Kinder Morgan’s sale of its Canadian unit, a deal designed to fund the Trans Mountain pipeline expansion. At $1.75 billion, the public market debut of Kinder Morgan Canada (TSX:KML) is on track to be the fourth most valuable in Canadian history.
Here’s a look back at some of the biggest IPOs in Canada since Manulife Financial went public for $2.49 billion in 1999. The figures, based on data provided by Thomson Reuters, include proceeds raised through over-allotments:
Sun Life Financial: $1.89 billion in 2000. Soon after Manulife’s blockbuster IPO, fellow insurer Sun Life Financial followed suit. It 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. In early trading Tuesday, it was at $44.33.
Hydro One: $1.83 billion in 2015. The Hydro One IPO, another politically charged stock offering, was part of the Ontario government’s plan to raise money to fund transit and infrastructure projects. The partial sale of the utility triggered concerns from critics who said it would result in higher electricity prices. It debuted at $21.50 and in early trading Tuesday it was at $23.38.
PrairieSky Royalty: $1.67 billion in 2014. Calgary-based energy giant Encana Corp. raised $1.67 billion in a spring 2014 IPO when it spun off 46 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 was trading early Tuesday at $30.21.
Athabasca Oil: $1.35 billion in 2010. Founded in 2006, the energy company is focused on the development of oil assets in northern 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. The stock has been below $2 since January, trading at $1.27 early Tuesday.
Franco-Nevada: $1.26 billion in 2007. The Toronto-based mining royalties company was taken private in 2002 and went public in 2007, raising $1.26 billion on the strength of its portfolio including Barrick Gold Corp.’s Goldstrike property and Stillwater Mining Co.’s Stillwater property. Since its debut in December 2007, Franco-Nevada’s stock has increased from around $15 to $98.65 shortly after markets opened Tuesday.