CPE Analytics reports 2024 IPO trends with mining IPOs dominating and CPC offerings disappearing
CPE Analytics has released its summary report on Canadian initial public offerings (IPOs) for the first three quarters of 2024.
The report shows that seven IPOs were completed in the third quarter, raising a total of $305.76m on the Canadian Securities Exchange (CSE), TSX Venture Exchange (TSX-V), and Toronto Stock Exchange (TSX).
Excluding Capital Pool Company (CPC) and Special Purpose Acquisition Company (SPAC) IPOs, six IPOs raised $13.62m. Mining IPOs, particularly on the CSE, continue to drive the Canadian IPO market in 2024.
Without mining IPOs, the non-CPC/SPAC IPO market in the third quarter would have seen a significant decline.
CSE led with four IPOs, followed by TSX-V and TSX, each completing two mining IPOs and one SPAC IPO, respectively. Mining companies dominated the IPO landscape with five IPOs, while diversified industries and SPAC each accounted for one IPO. Notably, this quarter saw no CPC IPOs, a first since 2016.
For the first nine months of 2024, 19 IPOs were completed across Canadian exchanges, raising $318.65m. These IPOs took place on CSE (7), TSX (1), TSX-V (10), and NEO/CBOE Canada (1).
Excluding CPC and SPAC IPOs, 12 IPOs raised $25.07m, with CSE leading with 7 IPOs, representing 58 percent of non-CPC/SPAC IPOs and 63 percent of the total proceeds. Mining IPOs led the sectors, accounting for 9 IPOs and $9.13m, followed by cleantech and diversified industry IPOs.
The report highlights a deepening IPO crisis in Canada. In 2021, VC/PE-backed IPOs were significant, with 10 venture capital-backed and 13 private equity-backed IPOs, contributing 59 percent of the total gross IPO amount.
However, since 2022, no venture capital-backed IPOs have been completed, and only two private equity-backed mining IPOs have occurred. The absence of VC-backed technology IPOs raises concerns for venture capital and private equity firms, which often rely on IPOs as an exit strategy.
Additionally, the disappearance of CPC IPOs, which play a vital role in companies going public through CPC qualifying transactions, is another troubling development.
No Canadian companies completed direct IPOs on US or international stock exchanges during the first half of 2024.
