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TORONTO — Hydro One Ltd, the giant transmission utility whose sale has sparked political controversy in Ontario, makes its debut on the Toronto Stock Exchange today in one of the largest initial public offerings in Canada in 15 years.

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One of the largest transmission systems in North America in launching the biggest market debt Canada has seen in 15 years.





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The stock rose more than 5 per cent in morning trading. Shares traded at $21.46 at 11:27 a.m. Thursday in Toronto, compared with an IPO price of $20.50.

The Ontario government has said it plans to use the $1.66 billion generated by selling 13.6 per cent of its stake in the company to fund transit and infrastructure projects.

Judging by the first 30 minutes of trading in Hydro One shares, the practice of flipping is alive and well.

Flipping refers to the practice of investors buying into an initial public offering – and selling their shares on the first day – hoping for a small profit. Flipping has proven to be a profitable exercise in the past because of the tendency of IPOs to be priced a touch under their real value.