The IPO market in Canada ‘took a breather’ in the first quarter of 2011, according to stats released by PricewaterhouseCoopers (PwC).
The low level of activity was due to volatility in equity markets caused by global crises, the pulling of some IPOs forward into 2010 and the fact that Q1 is usually a slow month for new issues, says PwC in its quarterly IPO study.
The first three months of 2011 saw less than $200 mn raised from 13 issues of new equity across Canada’s exchanges, compared to $1.2 bn worth of new issues in the fourth quarter of 2010.
Figures were also down on the comparable period last year, when there were 16 new issues worth $464 mn.
‘We had a very robust IPO market coming into the end of last year, and a number of new issues were pulled forward into 2010 to take advantage of the strong market. Combined with what is a traditionally slower quarter for IPOs, the result was even lower activity for Q1,’ comments Neil Manji, PwC national IPO services leader.
PwC expects activity to pick up in the coming months, driven by improving sentiment in the Canadian capital markets, the recovery in the US and a decent IPO pipeline.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.