First half 2019 IPO market continues to struggle

Initial public offerings (IPOs) completed on Canadian exchanges in the first half of 2019 lag that of the first half of 2018 in both IPO number and amount raised, according to the Canadian IPO Report released today by CPE Media Analytics, the data analytic service of CPE Media Inc.

First Half IPO Snapshot (CNW Group/CPE Media Inc.)
First Half IPO Snapshot (CNW Group/CPE Media Inc.)

Just 55 IPOs completed during the first half of 2019 on the four exchanges, including Capital Pool Company (CPC) and Special Purpose Acquisition Corporation (SPAC), raised gross proceeds of $1,003.63 million, and represented a decline of 13% in number of IPOs and 28% in gross amount raised from the same period in 2018.

Excluding CPC and SPAC, 21 IPOs raised $380.15 million, compared to same number of IPOs and $1,429.17 million raised for the same period in 2018, a decrease of 73%.

Of the non-CPC/SPAC IPOs, the CSE continues to lead with 15 IPOs and $84.09 million raised.  TSX Venture Exchange (TSX-V) and The Toronto Stock Exchange (TSX) saw 5 listings with $20.06 million and 1 listing with $276 million raised, respectively.  No non-CPC/SPAC IPOs were completed on NEO Exchange during H1 2019.

CPC and SPAC IPO listings dominate TSX-V (in case of CPC) and NEO (in case of SPAC) activity.   CPC IPOs accounted for 32 or 86% of the total number of IPOs on the TSX-V in the first half, in line with full year 2018 (89%).  This is ahead of full year 2017 (77%) activity but below full year 2016 (94%). Since 2016, 5 IPOs have been completed on NEO; four of which were SPAC IPOs.

Lightspeed POS’ $276 million IPO on TSX was the first venture-backed IPO since 2018, accounting for 73% of the total non-CPC/SPAC IPOs and 27% of total IPO activity.

CPE Media is releasing a first study on IPO listing costs on the Canadian exchanges. For the first half of 2019, the average cost to proceeds ratios for CSE, TSX, TSX Venture (non-CPC), NEO (PAC), TSX Venture (CPC) are 8%, 7%, 13%, 4.67%, 33% respectively.  It should be noted that the analysis is provided for information only, due to the small sample size, the results may not represent true costs of listing on the exchanges.

First Half League Tables*:

  • Haywood Securities Inc., Canaccord Genuity Corp., PI Financial Corp., Mackie Research Capital Corporation, Leede Jones Gable Inc., Chippingham Financial Group Limited, Industrial Alliance Securities Inc., M Partners Inc., and Raymond James Ltd. ranked as top nine underwriters in number of lead IPOs.
  • Canaccord Genuity Corp., Raymond James Ltd., BMO Nesbitt Burns Inc., J.P. Morgan Securities Canada Inc., National Bank Financial Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., Cormark Securities Inc., and Eight Capital were the top ten underwriters in total IPO amount.
  • Top 13 law firms by number of IPOs (1-13): Miller Thomson LLP, DuMoulin Black LLP, Burstall LLP, Getz Prince Wells LLP, Northwest Law Group, Salley Bowes Harwardt Law Corp., Armstrong Simpson, DLA Piper (Canada) LLP, Goodmans LLP, Koffman Kalef LLP, McMillan LLP, Pushor Mitchell LLP, TingleMerrett LLP
  • Top 12 law firms by total IPO amount (1-12): Stikeman Elliott LLP, Goodmans LLP, Osler, Hoskin & Harcourt LLP, McCarthy Tétrault LLP, DLA Piper (Canada) LLP, Harris + Harris LLP, Northwest Law Group, Alexander Holburn Beaudin + Lang LLP, DuMoulin Black LLP, Miller Thomson LLP, Salley Bowes Harwardt Law Corp., Vantage Law Corporation.
  • Top 6 Auditors by number of IPOs (1-6): Dale Matheson Carr-Hilton LaBonte LLP, Manning Elliott LLP, Smythe LLP, Davidson & Company LLP, De Visser Gray LLP. 
  • Top 6 Transfer Agents by number of IPOs (1-6): Computershare, TSX Trust Company, Odyssey Trust Company, National Issuer Services Ltd., AST Trust Company (Canada) , Capital Transfer Agency Inc.

*all IPOs, the ranking excluding CPC and SPAC can be founded in the detailed analysis.

“CPE Media Analytics is the only data provider that accurately tracks and provides comprehensive analysis on all IPOs, including non-CPC and non-SPAC IPOs which are indicators for future listings through qualifying transactions (QTs) or reverse take-overs (RTOs) or qualifying acquisitions (QAs). We are also the only provider that accurately tracks costs of IPO listing, including placement commissions, corporate finance fees, legal fees for both the issuer and the underwriters and other fees. Our comprehensive analysis with first half detailed ranking (league tables) is available for purchase for any firms that wish to get insights on all IPOs since 2016,” commented Ted Liu, President of CPE Media Inc.

The full IPO report can be downloaded from website:

Source: Newswire