Hi there,
We are truly in rare territory here. BIPC was spun out to make it more attractive to institutional and US. retail investors. So it was not surprising to see strong demand for these shares. However, it is important to note that the economic value of both shares remain equal. Is the 12.3% premium warranted? To be honest, not entirely sure as this is not something we see very often.
What we can say is that the 12% differential has been the norm over the past few months, so it looks like the gap has stabilized at this level. One of the reasons for the higher price, it has a much lower float than BIP.UN. Simple market dynamics at play: low float + strong demand = higher price. The company is trying to address this issue by acquiring all of BAM's BIPC holdings and releasing those to the public. This will increase the float, and perhaps reduce the gap? Once again, pure speculation here but worth monitoring.
It will be interesting to see where BEPC and BEP.UN settle. That split just took place and the discount last i checked was 6%. However, BEPC has a much higher float. The split was a 1 BEPC share for every 4 BEP.UN share, where as BIPC was only 0.11 for every 1 share of BIP.UN. If BEP settles in this range, than i suspect the added BIPC float from the BAM acquisition will reduce the price gap. Once again however, pure speculation at this point.
Mat