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Nov 5 (Reuters) - Waste management company GFL Environmental Inc plans to cancel its initial public offering (IPO) after institutional investors pressed the Canadian firm to price its shares below the deal’s marketing range, the Globe and Mail reported on Tuesday.
GFL Environmental had said in October that it aimed to raise up to $2.42 billion in an IPO, with price expected to be between $20.00 and $24.00 per share, giving the company a valuation of up to $7.56 billion, including underwriters’ option.
However, institutional investors balked at the range over the past two weeks and pushed GFL Environmental to price its deal at $18 a share, partly because of concerns about the Edmonton-based company’s debt load, the Globe and Mail said.
"The (existing) shareholders have determined that at $18, we don't believe that represents fair value for the company, so the shareholders have decided to inject more equity into the business to fund the future growth of the company and revisit the public markets at a later date," Chief Executive Officer Patrick Dovigi said tgam.ca/2K90Dp5 in a statement to the Globe and Mail.
GFL Environmental did not immediately respond to a Reuters’ request for comment. (Reporting by Dominic Roshan K.L. in Bengaluru, Editing by Sherry Jacob-Phillips)