Value of Canadian equity issues hits record high in 2016

Thu Jan 5, 2017 7:06am EST
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By John Tilak

NEW YORK (Reuters) - The value of Canadian equity issues rose to an all-time high in 2016, driven by large deals in the energy and mining sectors, according to Thomson Reuters data released on Thursday.

Equity issues increased nearly 19 percent last year to C$51.2 billion ($38.56 billion) from C$43.1 billion in 2015, the figures showed. That broke the previous high of C$49.4 billion in 2009.

The top six advisers for the year were Toronto Dominion Bank, Royal Bank of Canada, Bank of Montreal, Canadian Imperial Bank of Commerce, Bank of Nova Scotia and National Bank of Canada.

The biggest transactions of the year were TransCanada's raising of C$4.4 billion and C$3.5 billion, respectively, in two deals to help fund its acquisition of Columbia Pipeline, and Suncor Energy's C$2.9 billion equity issue.

The trend of an increasing number of large deals spilled over from 2015 into 2016.

“If 2015 was the year of the big deals, this was the year of the mega deals,” said Peter Miller, head of Canadian equity capital markets at BMO Capital Markets.

The year also signaled a "reopening of the mining market," he added.

Mining transactions in the period included Franco-Nevada Corp’s C$1.3 billion capital raise and Silver Wheaton Corp’s C$820 million offering.   Continued...

People walk by a Bay Street sign at the financial district in Toronto, October 10, 2008. REUTERS/Mark Blinch