This year in IPOs
The worst year in a decade for IPO activity in Canada… That’s where “2007″ will be in the history books, unless we see a drastic change in the final three months remaining.
2001 had only 46 issues, but with a total value of $2.1-billion. The-year-to-date, 2007, had 63 IPOs with a combined value of only $1.2-billion. This means that more than $900-million in new issues would need to be done in the fourth quarter of this year just to match 2001 (the decade low). Last year, at this time, there were 95 IPOs with a value of $4.7-billion.
“At the current rate of activity, it is unlikely we will even reach the 10-year low-water mark, set in the aftermath of the collapse of tech stocks in 2001,†said Ross Sinclair, national leader of PricewaterhouseCoopers’s IPO and income trust services.
What caused IPOs to lag this year? A number of factors - most notably the federal government’s policy changes to income trusts, blocking that source of financing.
(Source: survey by PricewaterhouseCoopers LLP)
Related Articles