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PwC: Surge redeems 2012 Canadian IPO market

By Rob Starr, Content Manager,

After a very slow start to the year, the strong fourth quarter leaves 2012 with a total of 62 IPOs on all exchanges, delivering $1.8 billion in new equity for the year. There were 61 IPOs on Canadian exchanges in all of 2011 for a total of $2 billion. A $1.3 billion surge of new equity issues in the fourth quarter helped turn around the 2012 Canadian IPO market and raises hopes for growth in 2013, the annual survey of Canadian equity markets by PwC has revealed.

Only 12 new issues made it to the TSX in 2012 for a total of $1.7 billion, the PwC survey showed. In 2011, 15 IPOs debuted on the TSX with a value of just less than $1.8 billion. The TSX Venture hosted 44 IPOs in 2012 with proceeds totaling $107 million, compared to 45 new issues worth $214 million in 2011.

The $365 million IPO of retailer Hudson’s Bay Company in the fourth quarter was the largest of the year. The $301 million raised by mining company Ivanplats Limited was the second largest and the biggest new offering of the year from the minerals sector, also in the fourth quarter. Argent Energy Trust raised $212 million in the third quarter, the largest IPO from the energy sector.

The fourth quarter of 2012 was notable for the diversity of new issues as well as for the size of the total proceeds, says Dean Braunsteiner, PwC national IPO services leader.

“We’re used to the mining sector playing an important role in the Canadian IPO market, but the miners shared the spotlight in the last quarter with the consumer products, retail, energy and real estate sectors,” explains Braunsteiner. “The results of the last quarter not only speak to the pent-up demand for equity capital, they are a testament to the underlying strength of the larger Canadian economy.”

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