Deal volumes in Canada’s equity markets have fallen to their lowest level in 23 years.
Equity and equity-linked offerings in Canada declined in 2024 for a third consecutive year to hit their lowest level since 2001 when the market collapsed after a technology bubble burst.
Data from Bloomberg News shows that there were 236 equity deals in Canada over the past year, raising $17.2 billion ($12 billion U.S.).
The 2024 activity is down 13% compared with $19.8 billion worth of deals executed in 2023.
The anemic activity over the past year is especially disappointing given the raging bull market and the fact that the Toronto Stock Exchange (TSX) is currently near an all-time high.
The poor shape of Canada’s equity deals, such as initial public offerings (IPOs) and mergers and acquisitions (M&A), stands in sharp contrast to the neighbouring U.S., where such offerings have climbed for a third straight year.
RBC Capital Markets (RY) topped Canada’s equity deals table this year, raising $2.8 billion for companies. BMO Capital Markets (BMO) came in second, having raised $2.7 billion.
The two banks accounted for 34% of the total equity offerings in Canada during 2024.
There was one IPO held on the Toronto Stock Exchange this year, the first market debut for a company in Canada in 18 months.
The lone IPO was Groupe Dynamite (GRGD), a clothing company behind “Garage” branded stores. It raised $300 million in a November deal that valued the company at $2.3 billion.
The stock of Groupe Dynamite has risen 2% since its IPO and currently trades at $21.03 per share.