Definity Financial Corporation’s C$2.1. Billion IPO

Davies Ward Phillips & Vineberg LLP acted for a syndicate of underwriters in connection with Definity Financial Corporation’s Initial Public Offering.

On November 23, 2021, insurer Definity Financial Corp (DFY.TO) completed  the largest Canadian IPO of 2021 with a raise of C$2.1 billion ($1.6 billion). 

This is the largest IPO by a Canadian company in over 20 years and the second largest ever, when taken together with the concurrent cornerstone private placements to Healthcare of Ontario Pension Plan and Swiss Re for aggregate proceeds of $700 million. The IPO and private placements were made in connection with the concurrent demutualization of Definity’s direct subsidiary (Economical Mutual Insurance Company) – the first demutualization of a Canadian property and casualty (P&C) insurer.

The syndicate of underwriters was led by BMO Capital Markets, RBC Capital Markets and Barclays, as global coordinators and joint bookrunners, and Scotiabank and TD Securities Inc., as joint bookrunners. 

Definity is the seventh-largest provider of P&C insurance in Canada, offering its insurance products primarily through four companies: Economical Insurance, Sonnet Insurance, Family Insurance and Petline Insurance.

The Davies team advising on this offering was led by David Wilson (Picture) and included Daniel Pearlman, Andrew Mihalik and Adam Birnbaum.

Involved fees earner: Adam Birnbaum – Davies Ward Philips & Vineberg; Andrew Mihalik – Davies Ward Philips & Vineberg; Daniel Pearlman – Davies Ward Philips & Vineberg; David Wilson – Davies Ward Philips & Vineberg;

Law Firms: Davies Ward Philips & Vineberg;

Clients: Barclays Bank; BMO Capital Markets; RBC Capital Markets; Scotiabank; TD Securities;

Sonia Carcano

Author: Sonia Carcano