No TSX activity makes third quarter IPO market lowest on record, PwC survey shows



    TORONTO, Oct. 2 /CNW/ - The downward trend that began more than a year
ago in the number and value of initial public offerings (IPOs) on Canada's
equity markets plumbed new depths in the third quarter of 2008 when not a
single issue reached the TSX, the latest PricewaterhouseCoopers (PwC) survey
of Canadian equity markets has shown.
    It is the first time in the history of the survey, and the only time in
recent memory, when there was virtually no activity on Canada's senior equity
exchange during a quarter. The previous record low was four new issues with a
value of $254 million that made it to the TSX in the third quarter of 2007.
    Just 14 new issues made it to the TSX Venture exchange in the three month
period ending September 30, 2008, the survey showed, with total proceeds of
just over $66 million. During the same period of 2007, the TSX-V recorded 15
new issues valued at $79 million.
    For the first nine months of 2008, a total of 53 new issues were launched
on all of Canada's exchanges for a total value of $680 million. In comparison,
63 IPOs were introduced in the same period of 2007, with proceeds totalling
$1.2 billion. The comparable figures for 2006 were 95 new issues with a value
of $4.7 billion.
    "It would be tempting to blame the disruption in the global credit
markets and the volatility in equity markets for these results, but in fact
this is part of a long-term trend that started late in 2006," explains Ross
Sinclair, national leader for PwC's IPO and income trust services. "We didn't
get here overnight."
    While it would be hard for the trend go lower, Sinclair is reluctant to
call this the bottom of the market for new equity issues. "A market is a
meeting point for a willing buyer and a willing seller, and until some degree
of stability returns, and we regain some certainty and predictability, we
won't have a market," Sinclair says. "It won't be until some point in 2009
before we see anything like the necessary conditions."
    For more information, please visit www.pwc.com/ca/iposurveys

    About PricewaterhouseCoopers

    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 140,000 people in 149 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
PricewaterhouseCoopers global network or other member firms of the network,
each of which is a separate and independent legal entity.

    
                   Survey of Canadian IPO Capital Markets
                        January 2008 - September 2008


             Number and Gross Value of IPOs on Canadian Exchanges
    -------------------------------------------------------------------------
    Exchange          Number    Value (M $CDN)    Number    Value (M $CDN)
                     Jan-Sept      Jan-Sept      Jan-Sept      Jan-Sept
                       2008          2008          2007          2007
    -------------------------------------------------------------------------
    TSX                  10           547            17           899
    -------------------------------------------------------------------------
    TSX Venture          37           127            39           269
    -------------------------------------------------------------------------
    Other (CNQ, AIM)      6             6             7            24
    -------------------------------------------------------------------------
    Total                53           680            63         1,192
    -------------------------------------------------------------------------


     Number and Gross Value of IPOs on Canadian Exchanges (3rd quarter only)
    -------------------------------------------------------------------------
    Exchange          Number    Value (M $CDN)    Number    Value (M $CDN)
                    July-Sept     July-Sept     July-Sept     July-Sept
                       2008          2008          2007          2007
    -------------------------------------------------------------------------
    TSX                   -             -             4           254
    -------------------------------------------------------------------------
    TSX Venture          14            66            15            79
    -------------------------------------------------------------------------
    Other (CNQ, AIM)      1             1             3             3
    -------------------------------------------------------------------------
    Total                15            67            22           336
    -------------------------------------------------------------------------
    




For further information:

For further information: Susan MacDonald, MacDonald & Co., (416)
975-1572, susan.e.macdonald@bellnet.ca; Carolyn Forest,
PricewaterhouseCoopers, (416) 814-5730, carolyn.forest@ca.pwc.com

Organization Profile

PwC

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890