Review of TSX Venture Exchange New Listings Activity in 2013
Each year the TSX Venture Exchange publishes a summary of its “new listings” activity. New listings include initial public offerings (IPOs), qualifying transactions through the Capital Pool Company program, companies completing a reverse takeover and companies moving up from the NEX exchange or down from the TSX. Here are some highlights of the data for 2013:
- In 2013 there were a total of 158 “new listings” compared to 240 in 2012 and 334 in 2011. The reduction in new listings activity that we saw in 2012 clearly continued into 2013.
- Of the new TSXV listings in 2013 there were just 52 IPOs compared to 125 in 2012. 15 of those were traditional IPOs of operating companies (vs 44 in 2012) and the other 37 were IPOs of Capital Pool Companies (vs 81 in 2012). The rate of both traditional IPOs and CPC IPOs dropped significantly for the second straight year.
- The amount raised in TSXV IPOs during 2013 was $118.7 Million, down 21% compared to 2012.
- Mining issuers showed a 40% drop in TSXV going public activity in 2013 compared to 2012. Only 7 mining issuers went public on the TSXV by way of a traditional IPO in 2013.
- In 2013 there were 66 CPC qualifying transactions completed on the TSXV (vs 61 in 2012) and 13 Reverse Takeovers (vs 16 in 2012). These are two categories where the numbers were actually fairly consistent year over year.
Clearly, 2013 was another bad year for TSX Venture Exchange new listing activities. It continues to be a tough market in which to go public on the TSXV. Here’s hoping that things turn around for 2014.
For general matters related to the TSXV, please contact LW Partner, Shane McLean, at email@example.com or one of our other securities law professionals.