GFL Environmental Inc. fell in its trading debut after raising US$1.425 billion in the largest Canadian initial public offering in almost six years.

Shares of North America’s fourth-biggest waste hauler fell 9.5 per cent at 12:08 p.m. in New York to US$17.19, down from its US$19 IPO price. GFL sold 75 million shares at that price Monday in its initial sale, valuing the company at US$5.87 billion based on 308.9 million shares outstanding.

GFL is the largest Canadian IPO since PrairieSky Royalty Ltd.’s offering of US$1.54 billion in May 2014.

GFL had earlier planned to raise as much as US$1.54 billion but was caught out by the panic over the coronavirus that swept markets last week. As markets calmed down Monday, the company decided to go ahead only to be faced by more market turmoil on Tuesday.

“I’m thrilled that in the face of very challenging market conditions over the last week, we were able to successfully market and price one of the largest IPOs in TSX history,” GFL founder and Chief Executive Officer Patrick Dovigi said in an email Monday.

Separately, the company offered 15.5 million of 6 per cent tangible equity units at $50 apiece concurrent with the IPO. It will receive net proceeds of about US$2.09 billion and use that to pay down debt.

The offering is being led by JPMorgan Chase & Co., Bank of Montreal, Goldman Sachs Group Inc., Royal Bank of Canada and Bank of Nova Scotia.

GFL is third time lucky after cancelling its IPO plans in November when investors balked at its debt load and questioned its growth prospects. It had sought to raise as much as US$2.1 billion at the top end of its marketed range of US$20 and US$24 a share. Banks running the IPO could only muster support for the offering at about US$18 a share, people familiar with the matter said at the time.

In 2018, GFL scrapped an earlier plans for an IPO after getting backing from BC Partners and the Ontario Teachers’ Pension Plan that allowed it to recapitalize. The company had aimed to raise as much as $1 billion through a share sale, people familiar with the plan said in January 2018.