Actionable Ideas for Companies and Sponsors

Canadian IPO Issuance has Reemerged 

The Canadian IPO market is off to its most active start since 2010, with ten offerings completed raising over $2 billion in proceeds. While there has been a historical concentration in the natural resources sector, 12 technology, healthcare and consumer companies have completed IPOs on the TSX since 2015, representing 40% of Canadian IPO activity. IPOs have achieved attractive pricing performance with over 80% of the IPOs pricing within or above the initial filing range. Furthermore, the Canadian market is accommodating selling shareholders, with 50% of the IPOs including secondary shares. Recent examples of notable Canadian IPOs include: 1) Kinder Morgan Canada (oil & gas), which priced a $1.3 billion IPO on May 25th, representing the 4th largest IPO in North America this year; 2) Canada Goose Holdings (consumer), which priced a $290 million IPO on March 15th {dual-listed: TSX and NYSE) and ranking as one of the best performing IPOs in North America, up 75% since IPO; and 3) Freshii (consumer), which priced a $109 million IPO on January 25th, currently ranking it as the second best performing Canadian IPO in 2017.