Canadian equity issues receive boost from energy sector deals
By John Tilak
TORONTO (Reuters) - The value of Canadian equity issues reached its strongest-ever level in the first nine months of 2016, driven by large transactions in the energy sector, according to Thomson Reuters data released on Thursday.
A modest improvement in commodity prices allowed energy and mining companies to tap equity markets and raise capital during periods of relative market stability.
The worth of equity issues reached C$38.8 billion ($29.38 billion) this year through September, topping the C$35.7 billon that was raised last year at that point, numbers from Thomson Reuters showed. It also surpassed C$35.9 billion of equity issuance for the same period in 2009, the previous record.
The figures reflect totals for initial public offerings and secondary issues.
Ranked by the value of equity financing deals, the three top advisers were Toronto Dominion Bank TD.TO, Royal Bank of Canada (RY.TO: Quote) and Bank of Montreal (BMO.TO: Quote). CIBC Capital Markets CM.TO, Bank of Nova Scotia BNS.TO and National Bank of Canada NA.TO rounded out the top six.
"This year has been exceptional for equity issuance. We've seen an unprecedented level of activity in the last eight to nine months," said Benoit Lauzé, CIBC's head of equity capital markets.
Natural resource companies saw an opportunity in a rebound in commodity prices to raise equity, and they did it to strengthen balance sheets and make acquisitions. Continued...