TORONTO, July 4, 2014 /CNW/ - The market for initial public offerings
(IPOs) in Canada bounced back in the second quarter with an impressive
$2.1 billion total raised on the TSX, the quarterly PwC survey of
Canadian equity markets revealed.
Five new issues on the TSX each raised proceeds of $100 million or
greater, including the $1.4 billion PrairieSky Royalty Ltd. issue, and
reversed the nearly flat line of the chart from the first quarter of
the year. The PrairieSky issue was the largest single placement since
the $1.3 billion Athabasca Oil Sands Corp. (Athabasca Oil) issue of
The second quarter performance was up from the $3.8 million raised on
the TSX Venture in the first quarter of the year, which saw no activity
on the TSX.
The change in fortune for the IPO market in the quarter suggests a
window has opened for new equity issues from quality companies from
across industries, says Dean Braunsteiner, national IPO services leader
"The stars have aligned for companies with sound businesses and a good
story to tell," says Braunsteiner. "The quarter sent us a clear signal:
There is growing optimism in the market, there is the expectation of
reasonable economic growth and there are investors seeking
opportunities in companies with both growth potential and established
revenues. The window is open for companies ready to take advantage of
"The variety of sectors giving us IPOs in the quarter speaks to the
generally positive climate," adds Braunsteiner. "New issues from the
oil and gas sector, the manufacturing and technology sectors and from
financial services suggest investors are looking across the spectrum
for good opportunities.
The improvement of IPO activity on the TSX failed to drag the TSX
Venture out of its slump. There was only one new issue on the TSX
Venture exchange in the second quarter of 2014 and just two IPOs in the
first quarter - a sign that junior mining companies continue to
struggle to attract investment in a period of commodity price
Total proceeds for the first six months of this year reached more than
$2.1 billion from nine IPOs on all exchanges in Canada vs $1.3 billion
from 17 new issues in the first half of 2013. The second quarter of
2014 is the largest since the second quarter of 2010, which recorded 16
IPOs worth $2.4 billion. Over the past decade, 2010 holds the record
for the largest IPOs from January to June with a total of 32 issues at
a value of $2.9 billion.
PwC has conducted its survey of the IPO market in Canada for more than
10 years. The reports are issued on a quarterly basis to provide
information to the corporate sector, investors, the media and others
that will help them put the market into better perspective. For the
purposes of the survey, investment vehicles such as structured products
are not considered IPOs because they do not represent new equity raised
for operating companies.
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SOURCE: PricewaterhouseCoopers (PwC Management Services LLP)
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