Financial Institutions Selected to Advise on Hydro One IPO
Scotiabank and RBC Capital Markets have been selected to act as the active bookrunners for the Initial Public Offering (IPO) of Hydro One. This decision marks the next step in a robust selection process that will allow broad ownership of Hydro One to help support investments in transit, transportation and other priority infrastructure projects. Denis Desautels, a special adviser to the Minister of Energy and former Auditor General of Canada, reviewed the selection process to ensure fairness.
On April 16, the government announced that shares of Hydro One would be offered to the public, starting with an offering of shares representing approximately 15 per cent of the company. The bookrunners will work with Hydro One and the province as it proceeds toward the IPO. The fees for the selected bookrunners will be 1 per cent for institutional investors and 3 per cent for retail investors. This fee structure is significantly lower than industry norms.
Broadening the ownership of Hydro One is part of the government's economic plan for Ontario. The four-part plan is building Ontario up by investing in people's talents and skills, building public infrastructure like roads and transit, creating a dynamic, innovative environment where business thrives and building a secure retirement savings plan.
- The Ontario government’s April 16 announcement to broaden ownership of Hydro One.