TORONTO, March 11, 2008 — The number of Canadian Initial Public Offerings (IPOs) on AIM, a market operated by the London Stock Exchange (LSE), decreased 46% during 2007, according to the 2007 Canadian AIM Survey released today from PricewaterhouseCoopers (PwC). There were seven new listings during 2007 raising £93 million, compared to 13 new listings raising £186 million in 2006.
"While activity in the first half of 2007 continued at a steady pace for Canadian companies listing on AIM, the second half of the year saw a considerable slowdown, with only two new listings in Canada,"says Ari Sahakian, a Director with PwC's Transactions Advisory Group.
Overall, AIM's 220 IPOs in 2007 represents a fall of 32% on the 325 IPOs experienced in 2006, according to the PwC 2007 IPO Watch Europe Survey. In Canada, 90 IPOs were listed on the TSX and TSX Venture exchanges for a combined value of C$3.4 billion, compared to 109 new issues worth C$5.6 billion during 2006.
The total number of Canadian AIM-listed companies slipped to 42 at the end of December 2007, compared to 43 at the end of December 2006. Canadian AIM-listed companies now represent approximately 12% of the 347 international companies listed on AIM. Offsetting the seven new listings during year, there were eight Canadian companies that de-listed from the AIM exchange, as they either moved to the LSE Main Market or were acquired. Sahakian notes, "The number of de-listings from AIM for these reasons indicates that Canadian companies are growing significantly or becoming attractive takeover targets."
Of the seven new AIM listings in Canada during 2007, three were in the technology sector, three were in the energy sector and one was in the mining sector. "2007 saw an interesting trend with the changing profile of Canadian AIM listed companies," says Sahakian. "While mining and energy companies still represent the majority, at 26 (or 62%), technology and media companies now total eight and represent 19% of the total Canadian AIM listed companies at December 31, 2007."
The total market capitalization of the 42 Canadian AIM-listed companies at December 31, 2007 was £5.5 billion, an increase of 31% from £4.2 billion at December 31, 2006. Three out of the six industry sectors advanced, led by mining at 79% and technology and media at 29%.
For the second half of 2007, the overall performance of the 42 Canadian AIM-listed companies advanced 3% (while the overall AIM exchange declined 14%), in what was a turbulent time across most global equity markets. While five out of the six industry sectors retreated during this period, the heavily weighted mining sector in Canada advanced 19%, pulling the overall change for Canadian AIM-listed companies into positive territory.
For more information and the full 2007 Canadian AIM Survey please visit www.pwc.com/ca/aim.
The Canadian PwC AIM Listing Services Group comprises a cross-functional team of transactions advisory, capital markets, assurance and tax specialists who provide a broad range of services to Canadian companies and their advisors in connection with AIM transactions, including:
- Preparations for becoming a public company
- Advising on regulatory and admission issues as well as advisor selection
- Undertaking business, financial and tax due diligence investigations as "Reporting Accountants" to support the AIM admission process and
- Assisting with GAAP conversion projects
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