With half the year over, Canada's IPO activity has fallen dramatically compared with the first six months in 2006, according to a PricewaterhouseCoopers survey.
Just $855 million in new equity reached markets in the first half of 2007, down from $4 billion in the same period in 2006.
Because half of the equity raised last year was from income trust IPOs, the collapse of the income trust market played a major role in this year's downturn.
The largest IPO this year was a $148 million placement in the second quarter by Northstar Healthcare Inc. That's a far cry from the $700 million Teranet Income Fund IPO in the first half of 2006.
For the year, the number of IPOs dropped 35% to 37 on the TSX and the TSX-Venture exchanges, compared with 57 in the first six months of 2006.
PwC said recovery in the IPO market following the collapse of the income trust sector is unlikely in the short-term.