GFL Environmental prices its shares at $19 in the IPO to earn a market cap of $6.08 billion

GFL Environmental prices its shares at $19 in the IPO to earn a market cap of $6.08 billion
Written by:
Michael Harris
3rd March, 09:02
Updated: 11th March, 08:54
  • GFL Environmental prices its shares at $19 in the IPO to earn a market cap of $6.08 billion.
  • GFL Environmental is also selling $775 million worth of tangible equity units (14 million).
  • GFL will be available to trade on the Toronto & New York stock exchanges by Tuesday or Wednesday.

The Initial Public Offering (IPO) of GFL Environmental Inc. on Monday saw it collected $1.4 billion in funds. While the massive fundraising was still marked below the target, much of it was attributed to an overall slowdown in the global financial markets ascribed to the rapidly spreading Coronavirus.

A prominent name in the waste management companies in Canada compromised at $19 per share of IPO price as compared to a higher $20 or $21 per share that was estimated earlier. At $19 per share, GFL Environmental earned a market cap of $6.08 billion.

GFL Had Its IPO A Day Earlier Than Previously Planned

After a sharp decline in the equity markets in the previous week, a steep rebound on Monday pushed the company to launch its IPO one day earlier than previously planned. Patrick Dovigi commented on GFL’s IPO in his capacity as the founder and CEO of the company and reiterated that GFL earned the reputation of one of the largest initial public offerings in Canada. He further added that a significantly higher than expected demand at the time of book-building accentuated it as an effective strategy to price earlier than previously planned.

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Earlier in November 2019, GFL Environmental had planned an IPO with a target for fundraising of $1.83 billion. Following pressures from institutional investors that demanded its shares to be priced below the market range, however, the IPO was postponed.

GFL Environmental is also selling $775 million worth of tangible equity units (14 million). GFL finds a place in the list of top North American waste haulers. The company currently serves more than 4 million households in the region. Its commercial customers count is at 135,000 for solid waste management and 13,000 for liquid waste management.

GFL Shares Will Be Available To Trade On The Toronto And New York Stock Exchanges

GFL (Green for Life) markets itself broadly in the major North American cities. The company announced in its IPO that its share will be listed on the Toronto Stock Exchange and the New York Stock Exchange. According to the company, shares will be available to trade on the stock exchange by Tuesday or Wednesday.

The list of underwriters to the GFL’s initial public offering includes the prominent names like Scotiabank, RBC Capital markets, Goldman Sachs, BMO Capital markets, and J.P. Morgan.

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