Trading in Tim Hortons shares got off to a brisk start Friday as lucky investors in the chain's initial public offering made windfall profits of up to $11 a share.
The first-ever share offering by the popular coffee and doughnut empire was priced at $27. But when trading opened on the TSX, the shares began trading north of $36 and went as high as $37.99 before sliding back to $35 by 10 a.m. EST.
The public gallery at the TSX was needed to accommodate the crowd at Tim's opening ceremony (CBC photo).
Shares also began trading on the New York Stock Exchange, where similar gains were seen.
Underwriters allocated 60 per cent of the shares for Canadian investors, but large institutional investors snapped up the majority of those shares.
Tim Hortons will raise $780 million through its initial public offering. The company said it will use money to pay off debt owed to its parent company, Wendy's International Inc.
There hasn't been this much popular buzz about an IPO in Canada since, well, ever, even though many have been more profitable.
Few can relate to most IPOs, but everybody knows the value of a double-double.