Canada IPOs slow in 3rd quarter on market volatility
(Reuters) - Canadian companies are postponing initial public stock offerings as extreme market volatility keeps investors on the sidelines, crimping a budding recovery in the IPO market, a new survey showed on Tuesday.
There were 20 new issues on Canadian exchanges in the third quarter, generating C$537.8 million ($507.4 million), according to the survey by corporate adviser PwC. That was less than half the amount raised in only 10 IPOS in the same quarter last year, at C$1.41 billion.
The European sovereign debt crisis and global economic weakness has raise fears of another banking crisis and recession, causing stock markets to slide.
"When the market experiences wide swings in short periods, issuers take a step back," said Neil Manji, PwC national IPO services leader.
"There are a number of offerings that are being deferred until some stability returns to the market, and this is consistent with what is happening in the global market for IPOs."
There had been some momentum in IPOs in the second quarter, with 21 offerings valued at C$1.2 billion, up from 13 in the first quarter for just C$200 million.
The third-quarter activity brings total IPOs in the first nine months of this year to 54, generating C$1.95 billion. A year earlier there were 42 but with a much higher value at C$4.31 billion.
($1 = $1.06 Canadian)
(Reporting by Louise Egan; Editing by Frank McGurty)
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