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By John Tilak and Euan Rocha
TORONTO, Oct 9 (Reuters) - The Canadian province of Ontarioexpects to raise as much as C$1.87 billion ($1.44 billion)through the sale of a 15 percent stake in its electric utilityHydro One Ltd, according to a regulatory filing on Friday.
The government plans to sell up to 89.25 million Hydro Oneshares in an initial public offering likely to be priced betweenC$19 and C$21, pegging the overall value of the company betweenC$11.31 billion and C$12.5 billion.
The Hydro One offering, which comes in the aftermath of asharp selloff in Canadian public markets over the summer, is setto raise less funds than the province had initially anticipated.
In a report in April, a special advisory council appointedby the government valued a 15 percent stake in the company atC$2.03 billion to C$2.25 billion. The report valued the entirecompany between C$13.5 billion and C$15 billion.
The IPO as it stands will only raise C$1.87 billion if itprices at the top end of a C$19 to C$21 a share range and if thebookrunners on the IPO tap an over-allotment option tied to theoffering.
If the over-allotment option is not exercised, the offeringis expected to raise C$1.54 billion to C$1.7 billion.
Despite the less-than-stellar valuation, the Hydro One IPOcould one of the biggest initial public offerings in Canadianhistory. PrairieSky Royalty Ltd's C$1.67 billion IPO last spring is the biggest to date in the Canadian market,according to Thomson Reuters data.
Underwriters of the offering include RBC Dominion Securities, Scotia Capital, BMO Nesbitt Burns,CIBC, TD Securities, National Bank Financial, Desjardins Securities, Raymond James, GMP Securities,Barclays Capital, Goldman Sachs and CreditSuisse Securities. (Reporting by Euan Rocha and John Tilak; Editing by Diane Craftand Tom Brown)
