They said things were at a low during Q1 2012, and it looks as if things have not changed that much as PwC released their finding for the second quarter of 2012 today, which indicates that only two new issues were filed on the Toronto Stock Exchange (TSX) during the quarter. Both were real estate trusts with a total value of $185 million
The 32 new issues on all Canadian exchanges in the first half of 2012 generated $220 million in new equity, a significant drop from the first half of previous year. By comparison, there were 34 IPOs on Canadian exchanges in the first half of 2011 with a value of $1.4 billion. The current European debt crisis is still having an impact on the global economy and continues to soften the market, not to mention Facebook’s disastrous IPO still continues to plague the tech industry.
“The interest in REITs is testimony to the enduring appeal of the yields from real estate, and the single bright spot in the second quarter,” Braunsteiner observes. “But sagging commodity prices and the recent slide in the price of oil have made it very difficult for companies in those normally active sectors to plan new issues. Caution will be the watchword for the next few months.”
So who will the next company to go public and file an IPO in Canada? Will we see a Canadian IPO before 2012 ends?