The initial public offerings (IPO) market in Canada came back after a weak first quarter, according to PwC’s Canadian equity markets quarterly survey.
A total of $2.3 billion was raised on the TSX in Q2, while Q1 saw no IPOs on this exchange at all.
There were six new issues, each worth over $100 million. A PrairieSky Royalty Ltd. issue made up more than half of the total value of IPOs at $1.4 billion. This is the largest single issue since 2010, which saw a $1.3 billion Athabasca Oil Sands placement.
PwC national IPO services leader Dean Braunsteiner said the quarter’s activity speaks to a business climate that is increasingly positive.
“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,” Braunsteiner said. “The window is open for companies ready to take advantage of this market.
“New issues from the oil and gas sector, the manufacturing and technology sectors and from financial services suggest investors are looking across the spectrum for good opportunities.”
This good news on the TSX was not good enough to pull the TSX-V out of a slup. This quarter saw no IPOs on this exchange, after $3.8 million was raised last quarter.
