CSE and Mining lead dismal 2022 Canadian IPO market

TORONTO, Oct. 11, 2022 /CNW/ - Canadian Financings (https://www.financings.ca/) today released Canada's only comprehensive initial public offering (IPO) summary report for Q3, 2022.

(Dollar figures are in Canadian dollar, unless otherwise noted)

Canadian IPO market continued its mighty struggle in Q3 2022, reporting only 9 IPOs or 20 IPOs including Capital Pool Company (CPC) and Special Purpose Acquisition Corporation (SPAC) IPOs, for $49 million and $53 million respectively.

Q3 non-CPC/SPAC IPO results ranked 4th lowest since 2017, slightly better than the results of Q3 and Q2 2019 and Q2 2020, which raised $6 million, $7 million, and $11 million respectively.  Q1 2022 ranked the fifth lowest since 2017 with $58 million from 12 IPOs.

Dream Residential Real Estate Investment Trust (TSX: DDR.U) (US $125 million), Ivanhoe Electric Inc. (TSX/NYSE American: IE) (US $169 million) and Bausch + Lomb Corporation (NYSE/TSX: BLCO) (US $630 million) were the only $100 million plus non-CPC/SPAC IPOs, collectively raised $1,187 million or 90% of the total non-CPC/SPAC IPO amount.

Dismal first nine months

First nine months all IPO results represent decreases of 23% and 78% in total number of IPOs and amount raised from the same period last year (124 IPOs for $7,568 million).

Non-CPC/SPAC IPOs dropped 36% and 80% in total number of IPOs and amount raised respectively from the same period last year (58 IPOs for $6,638 million).

CSE leads all non-CPC/SPAC IPOs

In Q3, 2022, 5 IPOs completed on The Canadian Securities Exchange (CSE) while 4 IPOs completed on the TSX Venture Exchange (TSX-V).

For the first nine months of 2022, 21 IPOs completed on the CSE, representing 57% of total number of non-CPC/SPAC IPOs.

Mining leads all non-CPC/SPAC IPOs

8 of 9 IPOs were mining IPOs in Q3 2022 with four each on CSE and TSX-V. 

For the first nine months of 2022, 27 mining IPOs completed on all exchanges, accounting for 73% of total number of non-CPC/SPAC IPOs and 24% of total amount.

CSE leads mining IPOs

For the first nine months of 2022, CSE led all mining IPOs completing 17 IPOs or 63% of 27 mining IPOs. 9 and 1 mining IPOs completed on TSX-V and TSX respectively.

TSX leads gross amount

There was no IPO completed on Toronto Stock Exchange (TSX) in Q3 2022.  TSX continued to lead all exchanges in total gross amount, raising $1,549 million (92%) from all IPOs or $1,214 million (92%) from non-CPC/SPAC IPOs.

Breakdowns by Exchanges (bracket - non-CPC/SPAC)

• CSE – 21 IPOs for $26 million (21 IPOs for $26 million)
• NEO – 1 IPO for $2 million (1 IPO for $2 million)
• TSX – 5 IPOs for $1,509 million (3 IPOs for $1,187 million)
• TSX Venture – 69 IPOs for $139 million (12 IPOs for $107 million)

Report Summary

First nine months 2022 Canadian IPO Summary Overview report is available from financings.ca:  https://www.financings.ca/reports/

Methodology and Terminology

CPC - capital pool company
SPAC – special purpose acquisition corporation also blank check company in the US
Included: 
Canadian exchange (CSE, TSX, TSX-V, NEO) 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 only all financings database covering private (VC, PE, private exempt and non-exempt) and public financings by both Canadian and foreign firms, IPOs, M&As, fundraisings by, both Canadian and foreign, professional VC/PE firms, non-investment fund issuer funds, and investment funds. https://financings.ca

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CPE Analytics is Canada's only provider of comprehensive IPO report and analysis.

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SOURCE CPE Media Inc.

Ted Liu, President & CEO, CPE Media & Data Company, 647-782-8818, [email protected]