RBC, JPMorgan lead Canadian equity advisory in first quarter

Thu Apr 6, 2017 7:18am EDT
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By John Tilak

TORONTO (Reuters) - Royal Bank of Canada (RY.TO: Quote), JPMorgan (JPM.N: Quote) and Bank of Montreal (BMO.TO: Quote) took the top three positions advising on Canadian equity issues in the first quarter, according to Thomson Reuters data released on Thursday.

The volume slipped about 13 percent to C$12.9 billion ($9.6 billion) from year-earlier levels, the figures showed. Toronto Dominion (TD.TO: Quote) and Canadian Imperial Bank of Commerce (CM.TO: Quote) finished fourth and fifth, respectively.

The five biggest deals of the quarter were in the energy sector, led by Cenovus Energy Inc's (CVE.TO: Quote) C$3 billion offering to help fund its acquisition of oil sands and natural gas assets from ConocoPhillips (COP.N: Quote), followed by AltaGas Ltd's (ALA.TO: Quote) C$2.2 billion issue tied to its purchase of WGL Holdings (WGL.N: Quote).

RBC and JPMorgan were advisors on both those deals, and TD helped advise the AltaGas offering.

Initial public offerings rebounded after a lackluster 2016, with Freshii Inc FRII.TO and Canada Goose Holdings Inc (GOOS.TO: Quote) listing on the Toronto Stock Exchange.

"We're seeing a resurgence of the IPO market in Canada. There's a ton of interest in non-resource names," said Benoit Lauzé, head of equity capital markets at CIBC.

"We feel the environment is much more stable than it was a year ago," added Lauzé, who advised on both the Freshii and Canada Goose offerings.

CIBC and RBC were jointly ranked No. 1 for advising on initial public offerings in the quarter.   Continued...

FILE PHOTO: The logo of the Bank of Montreal (BMO) is seen on their flagship location on Bay Street in Toronto, Ontario, Canada March 16, 2017. REUTERS/Chris Helgren/File Photo