One new listing accounted for almost half of the dollar total
High interest rates, inflation, and global economic uncertainties conspired to weaken appetite for Canadian IPOs in 2024 with firms instead considering alternative listing methods such as reverse takeovers.
The dismal state of the initial public offerings market last year is highlighted in a new report from CPE Analytics which reveals that 25 IPOs completed across the Canadian Securities Exchange (CSE), TSX Venture Exchange (TSX-V), Toronto Stock Exchange (TSX) and NEO/CBOE Canada.
These listings produced aggregate gross proceeds of $642.42 million. However, without capital pool company (CPC) and special purpose acquisition corporation (SPAC) IPOs the total drops to 17 IPOs completed for aggregate gross proceeds of $345.84 million.
Things could have been far worse though but for Montreal-based clothing company Dynamite Groupe’s IPO. This oversubscribed listing – the only non-CPC/SPAC IPO on the TSX - accounted for $316.6 million in gross proceeds (including proceeds from a partial exercise of over-allotment option), 49% of the aggregate for the year – or 91% of the total non-CPC/SPAC amount.
"With a luxury-inspired mindset and a dedication to innovation and excellence, we are shaping a future where our brands remain inspiring and impactful. By harnessing our distinct brand identities, profound customer insights, disciplined execution, and adaptability, we are well-positioned to achieve enduring success," said Andrew Lutfy, chief executive officer and executive chairman of Groupe Dynamite.
The CSE was the exchange with the highest share of IPOs last year, taking 44% of completed IPOs (65% of non-CPC/SPAC). The 11 listings raised $21.84 million.
By industry, it was mining that dominated in number terms with 12 IPOs accounting for 48% of the total (71% of non-CPC/SPAC) and raising $13.79 million.
Multi-year challenges are set to continue in the short term compared to the US market where BMO is predicting a rebound in 2025.
