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TORONTO • The six per cent-seven per cent decline in the stock market since the government of Ontario announced last spring it would privatize Hydro One, combined with a desire to “reset its capital structure” means the proceeds from the initial public offering by the electricity transmission and distribution company will be lower than originally expected.

“The market has moved and the multiples aren’t as high as they were,” noted one banker when explaining the change.

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On Friday the issuer filed an amended and restated preliminary prospectus and indicated it would sell 81.1 million shares with each share expected to be sold in the range of $19 to $21 a share. If the mid point of the range is used then the issue will generate gross proceeds of $1.622 billion, all of which will flow to the provincial government.

If the over-allotment option is exercised then the company will sell 89.25 million shares – for gross proceeds of $1.785 billion – meaning the government will have sold off 15 per cent of the utility. In time the province plans to sell another 45 per cent — meaning the public will hold 60 per cent of the company with the government retaining the other 40 per cent stake.