Canadian IPOs surge in Q4

A $1.3 billion surge of new equity issues in the fourth quarter helped turn around the 2012 Canadian IPO market and raises hopes for growth in 2013, the annual survey of Canadian equity markets by PwC has revealed.

By Staff | January 3, 2013 | Last updated on January 3, 2013

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Read: Canadian IPO market to see boost in Q4: PwC

Nine new issues on the TSX in the last three months of 2012 helped power the final quarter of the year to a total of $1.3 billion in new equity, according to the survey. There were 23 IPOs on all Canadian exchanges during the period, compared to 10 new issues worth just $52 million in the last quarter of 2011.

After a very slow start to the year, the strong fourth quarter leaves 2012 with a total of 62 IPOs on all exchanges, delivering $1.8 billion in new equity for the year. There were 61 IPOs on Canadian exchanges in all of 2011 for a total of $2 billion.

The fourth quarter of 2012 was notable for the diversity of new issues as well as for the size of the total proceeds, says Dean Braunsteiner, PwC national IPO services leader.

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“We’re used to the mining sector playing an important role in the Canadian IPO market, but the miners shared the spotlight in the last quarter with the consumer products, retail, energy and real estate sectors,” explains Braunsteiner. “The results of the last quarter not only speak to the pent-up demand for equity capital, they are a testament to the underlying strength of the larger Canadian economy.”

Despite the optimism at the close of 2012 it’s not all clear sailing, Braunsteiner cautions. “The usual caveats still apply. Issues left unresolved by the ‘fiscal cliff’ negotiations in the U.S. will continue to hang over that market, and we are far from a resolution of the debt crisis in Europe. Caution is still the watchword,” he says.

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