Flat-lined market for IPOs on TSX shows no sign of revival in first quarter, survey reveals



    TORONTO, April 2 /CNW/ - The market for initial public offerings on
Canada's senior stock exchange endured the first quarter of 2009 without a
single offering of new corporate equity, a PricewaterhouseCoopers (PwC) survey
of IPOs on Canada's equity exchanges has revealed.
    It was the third consecutive quarter with no new corporate equity
offerings on the TSX.
    The market for IPOs didn't have far to fall: Only three new issues made
it to the TSX in the first quarter of 2008, for a total value of $113 million.
By comparison, in the first quarter of 2007 there were five IPOs with a value
of $191 million.
    Activity on the TSX Venture exchange was also down, with three IPOs and a
total value of $2.5 million during the quarter, off from the 14 issues valued
at $30.7 million during the first quarter of 2008. The same number of new
issues in 2007 generated $91.2 million in new equity.
    The TSX Venture IPOs were the only activity on all Canadian exchanges in
the first quarter of 2009, down from a total of 20 issues valued at $148
million in the same period of 2008. In the first quarter of 2007, there were
21 offerings with a value of $300 million.
    "It has been hard to find many signs of life in the IPO market in the
past two years, so optimism about the second quarter, and even beyond, is in
short supply," says Ross Sinclair, national leader for PwC's IPO and income
trust services. "But that doesn't mean investors have stopped looking for
opportunities in other new listings."
    The PwC survey does not include structured financial product listings in
its quarterly reviews of equities markets because they do not represent new
equity raised for operating companies. However, Sinclair points out that there
is still a market for new issues of these structured financial products -
investment vehicles created to acquire portfolios of traded shares, bonds or
other financial instruments - as an indicator that investors are seeking some
new listing investment opportunities in a variety of areas. In the first
quarter of 2009, there were eight new structured financial products introduced
to the TSX, with a value of $394 million, representing a decline from the same
period in 2008 of 25 issues worth $1.2 billion.
    "While not depressed to the IPO levels in our survey, it is interesting
to note that these structured products have also shown a steady decline," says
Sinclair. The total number of structured products in 2008 was 50 valued at  
$2 billion. In 2007 there were 80 worth $4.3 billion.
    For more information, please visit www.pwc.com/ca/iposurveys

    PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance,
tax and advisory services to build public trust and enhance value for its
clients and their stakeholders. More than 155,000 people in 153 countries
across our network share their thinking, experience and solutions to develop
fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP
(www.pwc.com/ca) and its related entities have more than 5,200 partners and
staff in offices across the country.
    "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario
limited liability partnership, or, as the context requires, the
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For further information:

For further information: Nina Godard, PricewaterhouseCoopers LLP, (416)
941-8383 ext. 13520, nina.godard@ca.pwc.com; Susan MacDonald, MacDonald & Co.,
(416) 975-1572, susan.e.macdonald@bellnet.ca

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