October 12, 2017
Partner and co-head of the Capital Markets Practice Rima Ramchandani has spoken to Lexpert about the 2017 resurgence of initial public offerings (IPOs) on the Toronto Stock Exchange (TSX).
The article says there was not one IPO on the TSX in the first quarter of 2016, something Rima says comes down to “global market volatility, low oil prices, uncertainty surrounding the U.S. election and the Brexit vote.”
But the rise of IPOs this calendar year, Rima says, can somewhat be attributed to the success of big-name IPOs, like Freshii Inc., and Canada Goose Holdings Inc.
“There was such a dearth of IPOs for a while that it took one successful company to start to reinvigorate people’s faith,” Rima told Lexpert.
“You get a couple of those brand-recognized high-quality IPOs people feel have done very well and, on the heels of that, bankers start to feel more confident in their ability to sell some of these issues, that there’s more investor appetite. So you start to see this succession of deals happening.
“When I talk to the investment bankers looking at pre-IPO candidates, a lot are keeping their eye on the tech space. A lot of those companies still aren’t large enough to access the IPO markets yet,” she says, “but I think ultimately the long-term goal is eventually . . . going public.”
Torys lawyers have been providing their analysis of the rise in IPOs, including in our article “Canadian IPOs on the Rebound in 2017.”
You can read more about our Capital Market Practice here.