Equity issuance rises in Q3: IIAC

By Staff | November 30, 2009 | Last updated on November 30, 2009
1 min read

The value of Canadian stock issuance rose dramatically in the third quarter, but much of the increase was due to a single large issuer, according to the Investment Industry Association of Canada (IIAC).

Total issuance value for Q3 topped $15.2 billion, more than double the sum raised on capital markets in the same quarter of 2008. Of that total, $4.3 billion was raised by Barrick Gold.

Other notable offerings included Genworth MI Canada ($945.7 million) and Brookfield Properties ($556.8 million).

So far this year, equity financings have totaled $44 billion, and 2009 is shaping up to surpass the record of $55 billion set in 2007. There were 734 equity offerings were completed in Q3, with 84% of these deals raising less than $10 million. These small deals accounted for less than 4% of capital raised.

Secondary offerings made up 69% of the total raised, while initial public offerings raised $1.5 billion, marking the highest total since Q4 of 2007.

Common shares made up $12.2 billion of the total, marking a 37% increase from the second quarter.

While the majority of the capital raised was in the form of common equity, preferred share issues raise $1.3 billion, while limited partnerships accounted for about $100 million.

Private placements totaled $2.2 billion, up from $1.2 billion from last quarter. Income trust issuance fell to $1.5 billion on 13 offerings, down 37% from Q2.

The IIAC report projects the final quarter of the year will see continued strength, as equity markets have continued their upward trajectory.


Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.