A survey of IPO activity in Canada in 2001 reveals the market sought the security of bricks and mortar as the basis for investments in the last months of 2001.

And despite the terrorist attacks in the U.S. on September 11, IPOs successfully completed in the second half of the year halted the trend of the first six months when activity was at its lowest level in a decade.

The Survey of IPOs in Canada in 2001, published by PricewaterhouseCoopers, shows that it was a difficult year for IPOs, according to Eric Slavens, head of the IPO Services group. However, with a total of 74 IPOs brought to market, 2001 was higher than 1992, the worst year for IPOs in a decade when only 64 were successfully completed.

Slavens noted that substantial offerings in November and December – including Shoppers Drug Mart for $540 million, Clean Power Income Fund for $187.9 million, and Davis + Henderson Income Fund at $172.4 million — indicated investors were ready to support an offering from established companies with solid earnings records.

In addition, there was renewed interest in real estate with three offerings totalling $505 million (Retirement REIT at $200.0 million, IPC US Income Commercial REIT for $155 million, and O&Y Real Estate Investment at $150 million). There was no real estate IPO activity in 2000.

“While the market was in deep hibernation in 2001, it was not dead,” Slavens said. “Investors demonstrated renewed interest late in the year for offerings built on a foundation of bricks and mortar.”

According to the PricewaterhouseCoopers survey, the 74 successful IPOs on Canada’s major national stock exchanges in 2001 were worth a total of about $5.9 billion. Of these, 40 were completed in the first half of the year and 34 in the second two quarters. Of the latter, 21 were brought to market after the September 11 terrorist attacks.