2024 Q3: CSE and Mining IPOs prevent total collapse of Canadian IPOs
All dollar ($) figures in Canadian dollars unless otherwise noted.
TORONTO, Oct. 1, 2024 /CNW/ - CPE Analytics is pleased to release its first three quarters of 2024 Canadian initial public offering (IPO) summary report today.
Third Quarter of 2024
7 IPOs completed on The Canadian Securities Exchange (CSE), The TSX Venture Exchange (TSX-V) and The Toronto Stock Exchange (TSX) for total gross proceeds of $305.76 million.
Excluding Capital Pool Company (CPC) and Special Purpose Acquisition Company (SPAC) IPOs, 6 IPOs completed for $13.62 million.
CSE and mining IPOs continue to sustain 2024 Canadian IPO market, without them, Q3 Canadian non-CPC/SPAC IPO market would be a total collapse.
CSE led all exchanges with 4 IPOs while TSX-V and TSX had 2 mining IPOs and 1 SPAC IPO respectively.
Mining IPOs led with 5 IPOs while diversified industry and SPAC each had one IPO. 3 of the mining IPOs were completed on CSE.
For the first time since 2016, there was no CPC IPO in Q3.
First Nine Months of 2024
19 IPOs completed on Canadian exchanges for gross proceeds of $318.65 million, including 7 IPOs on CSE, 1 IPO on TSX, 10 IPOs on TSX-V and 1 IPO on NEO/CBOE Canada.
Excluding CPC and SPAC IPOs, 12 IPOs completed in the first 9 months of 2024 for $25.07 million: 7 IPOs on CSE, 4 IPOs on TSX-V and 1 IPO on NEO.
CSE led all non-CPC/SPAC IPOs with 7 IPOs (58%) for $15.78 million (63%).
Mining IPOs led sectoral IPOs with 9 IPOs (75%) for $9.13 million (36%). Two Cleantech and 1 diversified industry IPOs made up of the 12 non-CPC/SPAC IPOs for the first nine months of 2024.
Canadian IPO crisis deepen
VC/PE backed IPOs: 2021 was a golden year for VC/PE backed IPOs in the most recent history, boasting 10 VC-backed and 13 PE-backed IPOs, together raising 59% of total gross IPO amount in 2021 or 64% of the total non-CPC/SPAC IPO amount.
Since 2022, there is no VC-backed IPOs and 2 PE-backed mining IPOs. VC/PE backed technology IPOs have all but disappeared, which does not abode well for VC and PE firms which rely on IPOs as an important exit mechanism.
Disappearing CPC IPOs: CPC IPOs provide an important way for companies to go public by way of CPC qualifying transaction (QT). The disappearing of CPC IPOs is deeply troubling.
Canadian IPOs on US or international exchanges
There was no direct IPO completed by Canadian companies on the US or international stock exchanges during the first half of 2024.
Summary report
Summary report can be downloaded from financings.ca website: https://www.financings.ca/reports/
Methodology and Terminology
CPC - capital pool company
SPAC – special purpose acquisition corporation also known as blank check company in the USA
Included:
Canadian exchange (CSE, TSX, TSX-V, NEO/CBOE Canada) or cross-listed Canadian/foreign exchange IPOs, by both Canadian and foreign firms.
Excluded:
- IPOs by Canadian firms solely on foreign exchanges
- ETFs/closed-end funds, publicly listed or non-listed investment funds
- Non-offering listings by qualification of distribution of previously issued securities
- Reverse take-overs (RTOs), qualifying transactions (QTs), qualifying acquisitions (QAs)
Canadian Financings
Canadian Financings, a service of CPE Analytics, is Canada's only all financings database covering private (VC, PE, private exempt and non-exempt) and public financings by both Canadian and foreign firms, both debt and equity, IPOs, M&As, fundraisings by both Canadian and foreign, professional VC/PE firms, non-investment fund issuer funds, and investment funds. https://financings.ca
CPE Analytics
CPE Analytics is a Canadian all financing intelligence provider. We provide comprehensive, verified, and unbiased information and unmatched insights and intelligence on public financings, private financings, initial public offerings (IPOs), M&As, professional investment firm fundraising activities.
CPE Analytics is Canada's only provider of comprehensive IPO report and analysis.
CPE Analytics is the data analytics division of CPE Media & Data Company. https://cpeanalytics.ca
CPE Media & Data Company
Founded by Canada's most experienced private capital and financing research experts, CPE Media & Data Company is Canada's leading all financing news and data provider. https://cpecompany.ca/
SOURCE CPE Media & Data Company
Ted Liu, CPE Media & Data Company, 647-782-8818, [email protected]
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