IPO growth has slowed since the beginning of the year, but things could be looking up
Whilst the past quarter had been steady for Canada's initial public offering (IPO) market, its growth appeared to have slowed slightly compared to the boom seen at the start of the year.
Still, PwC's survey of the market forecasts a strong finish for IPOs this year.
During the past quarter, PwC recorded eight new issues on Canadian exchanges and an IPO by a Canadian firm on a US exchange. Overall, these translated to $433 million in new equity for the whole quarter, dwarfing last year's $690,000.
Taking the spotlight are pharmaceutical firms. For instance, Jamieson Wellness launched the only IPO on the Toronto Stock Exchange (TSX), raising $300 million in the quarter. Also accounting for the majority of the proceeds is the Clementia Pharmaceuticals' issuance on NASDAQ amounting to $120 million.
Additionally, PwC recorded four issues on the Canadian Securities Exchange (CSE) and three issuances on the TSX Venture exchange.
For the first nine months of the year, 24 new issues on all exchanges in Canada were recorded, generating $3.3 billion. During the same period last year, the market raised only $2 million.
PwC national IPO leader Dean Braunsteiner said the slower recovery seen in the quarter would not last due to the pipeline of new issues destined for the market. Particularly, the strong showing on the pharmaceutical sector shows promise.
"The vibrant hub of pharmaceutical companies in Quebec will be a topic of conversation with the success of Clementia in the U.S. And we know that regulatory issues have held back IPOs from companies in the medical marijuana field. When those issues are resolved, we expect to see activity there," he suggested.
The IPO market is expected to perform well toward end of the year, supported by a buoyant economy and the improving commodity prices.
For more of Wealth Professional's latest industry news, click here.
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Still, PwC's survey of the market forecasts a strong finish for IPOs this year.
During the past quarter, PwC recorded eight new issues on Canadian exchanges and an IPO by a Canadian firm on a US exchange. Overall, these translated to $433 million in new equity for the whole quarter, dwarfing last year's $690,000.
Taking the spotlight are pharmaceutical firms. For instance, Jamieson Wellness launched the only IPO on the Toronto Stock Exchange (TSX), raising $300 million in the quarter. Also accounting for the majority of the proceeds is the Clementia Pharmaceuticals' issuance on NASDAQ amounting to $120 million.
Additionally, PwC recorded four issues on the Canadian Securities Exchange (CSE) and three issuances on the TSX Venture exchange.
For the first nine months of the year, 24 new issues on all exchanges in Canada were recorded, generating $3.3 billion. During the same period last year, the market raised only $2 million.
PwC national IPO leader Dean Braunsteiner said the slower recovery seen in the quarter would not last due to the pipeline of new issues destined for the market. Particularly, the strong showing on the pharmaceutical sector shows promise.
"The vibrant hub of pharmaceutical companies in Quebec will be a topic of conversation with the success of Clementia in the U.S. And we know that regulatory issues have held back IPOs from companies in the medical marijuana field. When those issues are resolved, we expect to see activity there," he suggested.
The IPO market is expected to perform well toward end of the year, supported by a buoyant economy and the improving commodity prices.
For more of Wealth Professional's latest industry news, click here.
Related stories:
How investors can gain exposure to driverless cars
Inside Canada’s newest capital pool company
