Jefferies

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.