Canada's largest companies have a proven new way to sell shares in the wake of Monday's $1-billion (U.S.) equity sale by Encana Corp. and if this approach to financing catches on, investment banks will see their underwriting fees slashed.
Credit Suisse Securities Canada Inc. and J.P. Morgan shocked the Street by helping Encana, one of the country's largest energy companies, raise money with a financing that resembled a block trade of stock, done for a 1.8-per-cent fee. That's less than half the 4-per-cent commission typically charged on a Canadian equity sale, and the deal has kicked off a heated debate in banking circles. Story
CPPIB forges stronger ties in China with pension agreement
The Canada Pension Plan Investment Board is targeting stronger ties to China through a new agreement with a large state group.
The manager of the country's largest pension fund signed a memorandum of understanding with China's National Development and Reform Commission (NDRC), the country's economic planning department, in Ottawa on Thursday. Under the agreement, the CPPIB will offer guidance on pension reform and other governance matters to a country facing an aging population and a long recovery from the one-child policy. The board will also seek opportunities to broaden its investments in an increasingly desirable market. Story
Canaccord raises $60-million to build out wealth business
Canaccord Genuity Group Inc. is raising $60-million in convertible debt as it attempts to give its Canadian wealth management business a shot of adrenaline.
The wealth management sector is generating some serious heat lately, with a number of smaller dealers getting gobbled up, and Richardson GMP Ltd. (RGMP), one of Canada's biggest independents, on the auction block. Story
DAILY DEALS
Airbnb's funding round led by Google Capital
Airbnb Inc. has brought on Alphabet Inc.'s investment arm as a backer, part of an expected $850-million funding round that values the home-rental company at $30-billion, people close to the deal said.
In addition to the new cash, employees who have been with the company for more than four years had the opportunity to sell common shares to investors as part of the deal. Roughly $200-million of employee stock was sold as part of that fundraising, these people said. Story
IN CASE YOU MISSED IT
Tim Kiladze: Frank advice for money managers: Embrace low fees, or else. Story
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