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  • Jul 13th, 2018 8:29 am
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[OP]
Deal Addict
Jun 27, 2007
3799 posts
777 upvotes

Hydro One

IPO soon, will be interesting to see valuations. Who else might be interested?
1278 replies
Deal Expert
User avatar
Feb 11, 2009
16176 posts
2155 upvotes
Toronto
I'll be buying the max regardless of valuation if I can get the IPO price....you're not going to be able to get access to a public utility like this which pretty much has no chance of going under for ages to come.
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Deal Addict
Dec 11, 2010
1700 posts
135 upvotes
I'm planning on getting a few shares. I've heard Hydro One employees will be getting a lot as a bonus, so I'm not sure what my odds are of snagging a few.
Deal Addict
Jan 31, 2003
1562 posts
62 upvotes
Toronto
how do i buy at the IPO price? i can't seem to find any info on this...
MechanicalMan64
Deal Addict
Aug 27, 2009
1174 posts
297 upvotes
Oakville
Hmmm, a "business" run by the government. Hmmm, what could possibly go wrong?

Pass.
Deal Fanatic
User avatar
Oct 9, 2008
5194 posts
1652 upvotes
Thornhill
dlhunter wrote:
May 19th, 2015 10:43 pm
IPO soon, will be interesting to see valuations. Who else might be interested?
There hasn't been any announcement of upcoming IPO date has there?

I've got cash waiting specifically for this IPO but if I don't get in during the first round I'm going to pass.
[OP]
Deal Addict
Jun 27, 2007
3799 posts
777 upvotes
Jeenyus1 wrote:
May 20th, 2015 8:44 am
There hasn't been any announcement of upcoming IPO date has there?

I've got cash waiting specifically for this IPO but if I don't get in during the first round I'm going to pass.
It's not imminent, but will happen soon.

Employees will be getting shares as bonus in the future, could be new shares. Ontario government will be selling its stake gradually (25% initially, followed by more down the road). I figure as Hydro One goes private, rates will rise - owning shares, hopefully, will help offset the cost of electricity.
Deal Addict
Apr 25, 2006
4313 posts
303 upvotes
I'm likely going to buy as much as I can. This business isn't going to disappear anytime soon.
"If you make a mistake but then change your ways, it is like never having made a mistake at all" - Confucius
Deal Addict
May 18, 2015
1237 posts
319 upvotes
Ottawa,Ont
I plan to sell on opening day if I can get in on the IPO
Deal Addict
User avatar
Dec 8, 2010
2287 posts
749 upvotes
Anonymouse wrote:
May 21st, 2015 1:42 pm
Infuriating.

Just keep electing Liberals, folks.
It's normal for privatisations, I think. Happened when Royal Mail went public. Keeps the unions quiet - basically because it's bribery - and in theory if you're an owner you work harder. Studies have shown that in well run companies that encourage employee ownership, the company does very well. For Hydro One, well, we'll see.

Anyway. Hoping there will be some kind of "if you live in Ontario you'll be able to get in on the IPO" type thing as there often is (again, see Royal Mail).

If not... guesses whether Questrade or IB will have access? Doubtful I spose. CIBC?
Sr. Member
User avatar
Jun 27, 2007
565 posts
98 upvotes
Toronto
Hi Daverobev,

That’s a great question.
At Questrade, we work very hard to ensure that our clients have access IPOs on a best efforts basis.

For any Questrade client interested in participating in the HyrdoOne IPO, please send an email to newissues@questrade.com
Please include the name of the IPO, your Questrade account number and contact information in your email, and we will respond with the specific instructions on how you can participate.

You can also contact the Questrade Trade Desk for more details: 1.866.980.9590

Thanks,
Carl from Team Questrade
Deal Addict
Dec 11, 2007
1796 posts
345 upvotes
Markham
need to know more about the valuation, and how friendly Ontario regulatory agency will be towards Hydro One on rate reviews

those are the 2 main drivers of long term regulated utility returns
Sr. Member
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Mar 13, 2012
857 posts
133 upvotes
Planet Earth
Cerenity wrote:
May 21st, 2015 4:24 pm
need to know more about the valuation, and how friendly Ontario regulatory agency will be towards Hydro One on rate reviews

those are the 2 main drivers of long term regulated utility returns
+1

H1 is management overhead bloated and over compensated so will probably pass unless a lot management is chopped.
If at first you don't succeed, destroy all evidence that you even tried.
Deal Addict
Dec 11, 2007
1796 posts
345 upvotes
Markham
i guess the good thing about Hydro One being bloated and inefficient is that the runway for improving operating efficiency is very long. CN used to be an extremely inefficient organization as well. Now they have one of the lowest operating ratios in the rail industry.

Maybe being a bit too hopeful :)


Wouldnt mind seeing OPG privatized too, and merged back with Hydro One eventually to form a single electric utility that covers both generation and transmission
Deal Addict
Aug 27, 2009
1174 posts
297 upvotes
Oakville
Cerenity wrote:
May 21st, 2015 9:44 pm
i guess the good thing about Hydro One being bloated and inefficient is that the runway for improving operating efficiency is very long. CN used to be an extremely inefficient organization as well. Now they have one of the lowest operating ratios in the rail industry.

Maybe being a bit too hopeful :)


Wouldnt mind seeing OPG privatized too, and merged back with Hydro One eventually to form a single electric utility that covers both generation and transmission

We deal regularly with H1 and OPG and the number of their attendees at meetings borders on the ridiculous. Most of them add no value whatsoever and many can hardly speak English.
Good luck getting more efficient though as even the engineers are part of a union (and many on the sunshine list) and the government will remain majority owner with decision making powers well into the future.

This thing will remain a political football.

Profit = Revenues minus costs. Increasing or decreasing profits will drive the stock price.
Increasing revenue = raising rates which is politically challenging given how high rates already are.
Controlling costs means layoffs which is difficult in a union environment, especially from a gov't that bought the union vote.

Keep in mind the government - hardly a model of efficiency - is running this thing.

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