Two especially exciting initial public offerings (IPOs) have hit the headlines in Canada this year, with one cannabis grower from Israel set to go public, while an as-yet unlisted waste solutions company could stun investors with masses of upside in the coming months. Let’s take a brief look at two of the most interesting IPOs lining up to debut on the TSX and see whether investors should think about adding them to a long-term portfolio.
The Israeli marijuana grower aiming for the high life
As if cannabis investors didn’t have enough variety to choose from, a glut of new marijuana growers is lining up to take aim at the TSX this year. One of them is an exciting cannabis company from Israel called Breath of Life International. What makes Breath of Life stand out in particular is its impressive production capacity, with an annual output of over 850,000 kilograms, covering a greenhouse area of almost 400,000 square metres.
Add to this a manufacturing plant which itself covers over 60,000 square feet, and you have a serious contender for a new cannabis stock investment. Investors who cashed out last year and have been searching through dud stocks for upside in 2019 may have a new hero on their hands. Looking to raise $150 million for their initial IPO, Breath of Life will sell for around $30 a share. With 14% of its stock due to hit the TSX soon, it’s sure to be an exciting debut.
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The lime green trucks you’ve always wanted to invest in
From one billion-dollar IPO to another, GFL Environmental is a recession-proof option in the waste management space that could do serious damage to Waste Connections’s segment of the TSX. With an IPO of nearly $2 billion, GFL Environmental could make headlines if it debuts later on this year. It will likely dual list on one of the U.S. stock exchanges, giving it a sturdy North American presence.
The home of the ubiquitous lime green trucks has hired the big guns of the financial advice world to assist in the decision, with the presence of Goldman Sachs Group and J.P. Morgan Chase as well as two Canadian banks, suggesting GFL Environmental is all but certain to be available for investment this fall.
A company that pulls in billions in annual revenue, GFL Environmental is a serious contender in North American waste management and a solid choice for a long-term investment. Reinvesting in growth in the U.S., the company could become one of the top two or three such companies active in recycling and waste collection and disposal.
As with Breath of Life, investors will have an exciting opportunity to massively grow their wealth with GFL Environmental. To give an idea of the upside potential, Waste Connections’s share price has leapt by over 400% since it debuted half a decade ago. There’s no reason why GFL Environmental won’t perform similarly, if not better: Remember, five years ago, few of the economic stressors existed that abound today, and a new defensive infrastructure play today could go even further.
The bottom line
Investors looking for exciting ways to grow their wealth fast should jump on Breath of Life and GFL Environmental when they debut. Breath of Life offers a taste of what get-rich-quick investors enjoyed about cannabis stocks last year, while the waste management superstars GFL Environmental look set to be the major new waste management investment of the next decade, with the ability to reward handsomely and fast.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Victoria Hetherington has no position in any of the stocks mentioned.