Market Insights Financial Corporate Finance

Initial Public Offerings - Canada

Canada

The transaction value in the Initial Public Offerings market is projected to reach US$1.39bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 17.99% resulting in a projected total amount of US$1.64bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$10.63m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (US$63,330.00m in 2024).

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Analyst Opinion

The Initial Public Offerings market in Canada is experiencing a significant uptrend in recent years.

Customer preferences: Investors in Canada are showing a growing interest in IPOs, seeking opportunities for diversification and potential high returns. The appeal of investing in newly listed companies with innovative business models or strong growth prospects is attracting both retail and institutional investors.

Trends in the market: One notable trend in the Canadian IPO market is the increasing number of tech companies going public. The tech sector in Canada is gaining momentum, driven by a supportive ecosystem, access to skilled talent, and government initiatives to promote innovation. As a result, tech IPOs are becoming more common, reflecting the market's appetite for disruptive technologies and digital transformation.

Local special circumstances: Canada's regulatory environment and listing requirements play a crucial role in shaping the IPO market. The stringent regulatory framework ensures investor protection and transparency, contributing to the overall credibility of the market. Moreover, the presence of reputable stock exchanges like the Toronto Stock Exchange (TSX) provides a platform for companies to access capital and enhance their visibility.

Underlying macroeconomic factors: The stability of the Canadian economy, coupled with low interest rates, is creating a favorable environment for IPOs. Companies are capitalizing on the conducive market conditions to raise funds for expansion, acquisitions, or debt repayment. Additionally, the increasing participation of retail investors in the stock market is fueling demand for new investment opportunities, further supporting the growth of the IPO market in Canada.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.