June 24, 2014
We released our Capital Markets 2014 Mid-Year Report on June 23, and the Financial Post has subsequently published an article highlighting the report along with summaries of several of the publication’s articles, including Cross-Border Financing Opportunities: IPOs and Alternatives, The Preferred Share Market Finally Re-Opens For Canadian Banks, and Streaming Transactions in the Mining Sector: a Financing Linchpin. Below is an excerpt of the article.
Rebounding with strength.
That’s the term used by Torys in describing the first half of 2014 for the North American capital markets.
There has been the mega domestic deal as demonstrated by the $2.6-billion proceeds generated for the Bank of Nova Scotia’s from the sale of most of its stake in CI Financial and the first issuance of non-viable contingent capital (NVCC) in the form of rate reset preferred shares with all the banks, except the Bank of Nova Scotia coming to market with such a structure.
On top of that there is the hot IPO market particularly in the U.S. where the first six months of this year follow from 2013, “one of the strongest U.S. IPO markets in recent memory.” [For Canada the IPO numbers are dismal with about a handful of companies raising capital from the public for the first time.]
In Torys view, investor confidence “appears to be building” while recent regulatory initiatives, such as the implementation of the JOBS Act in the U.S. and the liberalization of marketing rules in Canada, “have proved successful in creating a friendlier regime for companies looking to access North American public markets.”
To read the full article, click here.
To read Capital Markets 2014 Mid-Year Report, click here.