Rebound in Canadian IPOs sets stage for another good year in 2018, PwC says.

MONTREAL — Canadian initial public offerings rebounded last year from their worst performance in nearly two decades in 2016 as $5.1 billion in proceeds were generated with the prospect for a strong 2018, says Pricewaterhouse Coopers.

There were 38 issues from Canadian companies or companies listing on Canadian exchanges in 2017.

That included 13 in the fourth quarter, which raised a total of $1.7 billion.

Six of those were in the mining sector last quarter, raising the total number of sector IPOs for the year to 20.

A total of $4.7 billion was raised from 17 listings on the Toronto Stock Exchange and $55.5 million from 10 listings on the Venture Exchange.

In 2016, total proceeds amounted to $466.7 million from eight offerings.

A dismal 2016 was followed by a buoyant 2017, said Dean Braunsteiner, PwC national IPO leader.

“It certainly was a big turnaround in 2017 and I would say it was a bit of the stars aligning to allow the IPO market to bounce back the way it did,” he said in an interview.

Braunsteiner said the foundation started after the U.S. election in late 2016 when equity markets continued to increase and created opportunities for venture capitalists and private equity funds to monetize their investments.

He said signs are pointing to another good year.

“I think 2018 is certainly looking like it’s going to be another blockbuster year,” he said.

Braunsteiner said it’s difficult to forecast an amount of proceeds because companies are holding their cards a bit closer about whether to pursue IPOs, joint ventures, partnerships or asset sales.

“It’s hard to look into the pipeline to get a good predictor of what the market might be in 2018 but as long as the equity markets continue to run I think we’ll have a strong IPO market this year as well,” he added.

Despite accounting for more than half of public offerings last year, proceeds from mining offerings totalled $947.3 million, trailing energy at $2.02 billion.

Pharmaceuticals and health raised $668.5 million, retail $665.4 million, industrial products $400.1 million and other $416.5 million.

Low commodity prices have curtailed mining IPOs for the last five or six years. But a stabilization of prices could create some action among junior miners that have historically accounted for a lot of the IPO activity, Braunsteiner said.

The top IPO in 2017 came from Kinder Morgan Canada Ltd. (TSX:KML), which raised $1.75 billion in the second quarter. It was followed by a dual listing on the TSX and New York Stock Exchange of Luxembourg miner Nexa Resources S.A. (TSX:NEXA), which raised $728 million in the fourth quarter.

Other notable IPOs in 2017 were Canada Goose Holdings Ltd. (TSX:GOOS) which raised $340 million, Roots Corp. (TSX:ROOT) at $200 million and Stelco Holdings Inc. (TSX:STLC) at $200 million.

PwC said stabilizing commodity prices and the interest in copper, lithium and cobalt driven by the potential for electric vehicles will likely influence the 2018 IPO market.

Braunsteiner said sectors that missed the wave in 2017 included the budding recreational and medicinal cannabis industry, which faced regulatory uncertainty, and the tech sector including firms such as Hootsuite and Vision Critical.

PwC has conducted its survey of the IPO market in Canada for more than 15 years.

Just Posted

People hurt in rollover near Red Deer

Occupants of a vehicle that rolled south of Hwy 11A were airlifted… Continue reading

Eager-beaver cannabis entrepreneurs already waiting outside Red Deer City Hall

Appications will be accepted on a first-come basis starting on Tuesday

Like father like son: Red Deer area Dreeshen family dedicates life to public service

There are three jobs that could be considered the Dreeshen family business:… Continue reading

Restaurant owner concerned about Gasoline Alley road changes

Nearly 20 trucks were lined up on the service road in front… Continue reading

Preliminary hearings set for two men charged in weapons and drugs bust

A Red Deer man and Sylvan Lake man are facing 80 charges

WATCH: Hypnotizing show at Westerner Days

Hynotist and mentalist Joshua Seth performs three times a day at Westerner Days

WWII hero’s lost Purple Heart returned to his family

NEW YORK — A lost Purple Heart medal has been returned to… Continue reading

California girl, 2, accidentally shot and killed by boy, 4

SAN BERNARDINO, Calif. — Authorities say a 4-year-old boy accidentally shot and… Continue reading

A hairy issue: Sailors tell the US Navy, ‘We want beards’

PROVIDENCE, R.I. — Now that women in the Navy can wear ponytails,… Continue reading

PHOTOS: River Town Saints rock Red Deer

River Town Saints play Westerner Days Friday in Red Deer

PHOTOS: Dogs, horses and more animals at Westerner Days

Westerner Park’s pavilions were filled with animals during Westerner Days

Red Deer residents can’t get enough mini-doughnuts

Mini-doughnuts were the biggest draw to Westerner Days according to a Red… Continue reading

Four-car crash, including RCMP vehicle, on Highway 2

Two sheriff vehicles were also involved in the collision

Divers hunt for 4 after Missouri duck boat sinks, killing 13

BRANSON, Mo. — Divers are searching Friday for four people still missing… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month