GFL Seeks to Raise $2.1 Billion in Biggest Canada IPO Since 2004
GFL Seeks to Raise $2.1 Billion in Biggest Canada IPO Since 2004
(Bloomberg) -- GFL Environmental Inc., North America’s fourth-largest waste hauler by revenue, seeks to raise as much as $2.1 billion in what would be the largest initial public offering in Canada since 2004.
The Vaughan, Ontario-based company and some shareholders plan to sell 87.6 million shares at $20 to $24 each. At the top end of the range, GFL would have a market value of about $7.5 billion, according to a filing with U.S. regulators Wednesday. The company plans to trade under the symbol “GFL” on the Toronto Stock Exchange and the New York Stock Exchange.
The IPO in the next few weeks would be the largest in Canada since Petro-Canada’s privatization in 2004, which raised roughly C$3.2 billion ($2.4 billion), according to data compiled by Bloomberg. The company plans to have a dual-class share structure. The multiple-voting shares, which will be held by an entity controlled by founder and Chief Executive Officer Patrick Dovigi, will collectively represent about 3.8% of GFL’s outstanding shares and about 28% of the voting power.
It’s the second time GFL has considered going public. In January 2018, the company hired advisers to explore an IPO before agreeing to recapitalize with an investment from BC Partners and Ontario Teachers’ Pension Plan that gave GFL an enterprise value of C$5.1 billion. After the IPO, BC Partners, Ontario Teachers’ and GIC Pte Ltd. will collectively own about 61% of the company, the filing shows.
GFL said it plans to use the proceeds from the offering to pay down debt, and for general corporate purposes, including future acquisitions. The deal is being led by JPMorgan Chase & Co., Bank of Montreal, Goldman Sachs Group Inc., Royal Bank of Canada and Bank of Nova Scotia.
The IPO would come at a time of strength for waste-haulers’ stocks. Waste Management Inc., America’s largest trash firm, has risen more than threefold since the end of 2011, including a 29% gain this year. Republic Services Inc. has gained by more than two-and-a-half times since the end of 2011, including a 21% gain this year.
GFL operates across Canada and in 23 U.S. states, serving 4 million households.
--With assistance from Doug Alexander.
To contact the reporter on this story: Scott Deveau in New York at sdeveau2@bloomberg.net
To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, David Scanlan, Jacqueline Thorpe
©2019 Bloomberg L.P.