The Canadian initial public offering (IPO) market picked up in the second quarter of this year after no activity on the TSX at the start of 2014, according to a quarterly survey conducted by Toronto-based PricewaterhouseCoopers LLP.
The survey, released on Wednesday, found that IPOs raised $2.3 billion on the TSX during the second quarter of 2014. During that time, six new issues raised $100 million or more. One issue, PrairieSky Royalty Ltd., raised $1.4 billion making it the largest single placement since 2010 when Athabasca Oil Sands raised $1.3 billion.
“The stars have aligned for companies with sound businesses and a good story to tell,” said Dean Braunsteiner, national IPO services leader, PwC, in a statement. “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 this market.”
The TSX Venture exchange, however, remains in a slump, according to PwC, with no new issues released in the second quarter and only two IPOs released in Q1.
In total, nine IPOs raised more than $2.3 billion over the first six months of 2014 on all Canadian exchanges. In comparison, 17 IPOs raised $1.3 billion over the same time period in 2013.
PwC has conducted its survey of the IPO market in Canada for more than 10 years. 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.