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Canada’s initial public offering (IPO) market perked up in the third quarter (Q3 2018) with the emerging cannabis industry helping to drive deal activity alongside traditional sectors, according to report published Monday by Pricewaterhouse Coopers LLP (PwC).

There were 12 IPOs in Q3 2018, which raised a combined $792 million. there were just nine deals in Q3 2017, which raised $433 million.

Alongside three deals on the Toronto Stock Exchange, which raised $451 million, there were also a couple of cross-border deals, with two Canadian companies launching on Nasdaq, including a $202 million deal by medical cannabis company Tilray Inc. “For some companies, a U.S. listing is an efficient way to attract U.S. investors,” says Dean Braunsteiner, national IPO leader at PwC in Canada, in a statement.

There were also five IPOs on the Canadian Securities Exchange (CSE) during Q3 2018, bringing the total for the year to 14 transactions. Along with deals in the mining and real estate sector, several cannabis companies led the way on the CSE.

“The regulatory environment cannabis firms have to navigate to get directly to public markets is pretty rigorous, with pretty detailed scrutiny of licensing and business plans in any conventional IPO. Companies with exposure to the U.S. market see a clearer track through the CSE,” adds Braunsteiner.

There was also a notable deal by a real estate investment trust (REIT) in Q3 2018. “It’s a welcome return for a sector that has been very quiet recently,” said Braunsteiner. “I would expect to see more REIT issues in the future.”

The PwC survey does not count reverse takeovers or junior capital pools as IPOs.