The provincial securities regulator says market capitalization also hit a new high during 2020
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Despite initial disruption, investment markets in British Columbia proved resilient and strong in 2020 according to new stats.
The total market value of the province’s public companies grew almost 50% in 2020 to a record high of $286 billion. In the previous year growth was just 2%.
The new report from the British Columbia Securities Commission (BCSC) also reveals that capital raising by BC companies grew 38% to $23.6 billion in 2020.
This was driven by mining and other natural resource companies followed by the real estate and technology sectors.
BC is home to 45% of Canada’s listed companies and including more than half of Canadian-listed venture companies. The province’s companies tend to be smaller than those in Ontario, Alberta, and Quebec, with more than one third having a market value below $5 million.
"COVID-19 rattled B.C. investment markets in the first quarter of 2020, but they rebounded quickly, demonstrating their resilience and strength even during a global pandemic," said John Hinze, the BCSC's Director of Corporate Finance. "Not only did B.C. public companies finish the year with a record market capitalization, they also reported record capital-raising, including filing a record number of prospectuses with the BCSC."
Overall in 2020, the BC capital market – which includes capital-raising by B.C. companies and investment funds, as well as capital raised from BC investors – grew 29% to $135.5 billion, delivering a fourth consecutive year of growth.
BC capital raising by industry
- Mining: Capital-raising increased 125% in 2020. In total, 781 mining companies raised $8.1 billion in capital, accounting for 34% of the capital raised by BC companies.
- Technology, communication and entertainment: Capital-raising increased in 2020, as it did in 2019, primarily due to Telus Corporation completing significant financings in both years.
- Biotechnology: This sector raised $2.3 billion in 2020, a 123% increase, with the majority raised by four B.C. companies, AbCellera Biologics Inc., Zymeworks Inc., Aurinia Pharmaceuticals Inc., and Xenon Pharmaceuticals Inc.
- Real estate: Capital-raising stayed steady, attracting $2.8 billion in investment, a 1% decrease from the previous year.
- Cannabis: Capital-raising in this sector dropped 67% to $0.67 billion in 2020, continuing to cool down from the frenetic pace after cannabis legalization in 2018.