In Canada, the IPO (Initial Public Offering) market has been relatively quiet recently compared to our neigbours U.S.
In 2024, the U.S. experienced a revival in IPO activity. By the third quarter, the market had surpassed the total number of IPOs from 2023, reflecting steady recovery after a sluggish period. For instance, Nasdaq hosted 66 IPOs in the first half of 2024, raising approximately $8.7 billion. As of October 2024, the U.S. IPO market was on track to exceed the $20 billion raised in the previous year, with increased activity from sectors like technology and life sciences contributing significantly to this rebound
So why no IPOs in Canada:
- Economic Conditions: Global economic uncertainty and inflationary pressures have made investors more cautious, reducing the appetite for new public offerings.
- Private Funding Availability: Many Canadian companies prefer private equity or venture capital to fund their growth, avoiding the regulatory complexities and scrutiny associated with going public.
- Market Size: The Canadian market is smaller and more conservative compared to the U.S., making IPOs less frequent and often sector-specific, such as mining and energy.
- Alternative Listing Routes: Some companies choose to list directly on U.S. exchanges, seeking higher valuations and broader investor pools.
