IPO Market Shows Resilience


    In spite of tepid growth and prevailing global economic turbulence, IPO markets showed remarkable resilience in 2011 and there’s a robust pipeline of companies in Canada ready to list, says Ernst & Young’s ‘Global IPO trends’ report. “Overall, the number of issuers has gone up by four per cent in the last year,” says Bill Demers, partner and Canadian IPO leader. “The windows for completing a deal successfully are likely to open and close quickly as the IPO market functions very much in cycles. And right now, there are a lot of companies ready to go public. They’re just waiting for the right window to open.” The company suggests factoring in trends such as learning to live with volatility as the unpredictable nature of the market will have a cautionary influence on Canadian IPO decisions for at least the next 12 months and managing execution risk as valuation and pricing conditions continue to change quickly. In Canada, there is an estimated $40 billion worth of raised capital. There has also been a rise in venture-capital-backed IPOs globally and the trend is expected to continue.