The Canadian market for IPOs topped $5 billion in 2010, a significant increase from the less than $2 billion in 2009, according to the annual PwC survey of IPO activity on Canadian exchanges.
A total of $1.2 billion from 31 new issues on all exchanges in the fourth quarter helped push the total for 2010 to $5.5 billion for the first time since 2006, the PwC survey reported.
Ten new issues on the TSX gathered $1.1 billion in new equity during the final quarter of 2010, as opposed to just one new issue at $300 million in the same period of 2009.
The TSX Venture exchange accounted for 17 IPOs during the quarter totaling $139 million, up from 12 issues worth $51 million in the final three months of last year.
Stock it To Me
“The long climb back from the decade low of $682 million in new issues on all exchanges in 2008 has given the Canadian IPO market some momentum going into 2011,” said Neil Manji, PwC national IPO services leader.
"At the beginning of the year, we suggested an IPO market of $4 billion was attainable in Canada for 2010. We exceeded that target and have built a good foundation, but it hasn't been all smooth sailing. It's been an uneven market with disparity over valuations that resulted in certain IPOs being shelved or re-priced. However, even with smaller windows of stability during the period, companies that were well prepared and able to move quickly took advantage of the steadily improving market conditions."
Mining and the energy sector drove activity in 2010, something Manji sees carrying into 2011. But, he says, other fundamentals are also pointing to positive market conditions.
"Recent market returns indicate valuations and investor confidence are improving," he said. "The demand for yield is also a powerful factor in the market, so real estate and dividend-paying companies will continue to be attractive. Add any kind of good news from the US and the momentum we saw with IPO activity in 2010 should continue."
Source: PwC
A total of $1.2 billion from 31 new issues on all exchanges in the fourth quarter helped push the total for 2010 to $5.5 billion for the first time since 2006, the PwC survey reported.
Ten new issues on the TSX gathered $1.1 billion in new equity during the final quarter of 2010, as opposed to just one new issue at $300 million in the same period of 2009.
The TSX Venture exchange accounted for 17 IPOs during the quarter totaling $139 million, up from 12 issues worth $51 million in the final three months of last year.
Stock it To Me
“The long climb back from the decade low of $682 million in new issues on all exchanges in 2008 has given the Canadian IPO market some momentum going into 2011,” said Neil Manji, PwC national IPO services leader.
"At the beginning of the year, we suggested an IPO market of $4 billion was attainable in Canada for 2010. We exceeded that target and have built a good foundation, but it hasn't been all smooth sailing. It's been an uneven market with disparity over valuations that resulted in certain IPOs being shelved or re-priced. However, even with smaller windows of stability during the period, companies that were well prepared and able to move quickly took advantage of the steadily improving market conditions."
Mining and the energy sector drove activity in 2010, something Manji sees carrying into 2011. But, he says, other fundamentals are also pointing to positive market conditions.
"Recent market returns indicate valuations and investor confidence are improving," he said. "The demand for yield is also a powerful factor in the market, so real estate and dividend-paying companies will continue to be attractive. Add any kind of good news from the US and the momentum we saw with IPO activity in 2010 should continue."
Source: PwC
