Canadian IPOs are back, and the capital markets data proves it
The London Stock Exchange Group logged $89.4 billion in Canadian capital markets activity during the first half of 2024, a 68% jump from the same period a year earlier. That number, published in LSEG's mid-year review, isn't just a recovery story. It's proof that the drought is over.
IPO proceeds climbed to $3.5 billion across 27 transactions, up from $1.9 billion in the first half of 2023. The count matters as much as the dollar figure. Twenty-seven deals means underwriters are moving inventory, pricing risk, and finding buyers willing to commit capital to companies with no trading history. That's not a market on life support.
The equity capital markets portion of that activity hit $28.2 billion, a 115% increase year-over-year. Follow-on offerings and secondary raises accounted for the bulk of it, which makes sense. Companies that went public in 2021 or earlier, sitting on diluted share counts and burned-through cash, needed to refinance. The window opened. They used it.
Debt issuance carried the total
Debt capital markets contributed $61.2 billion, up 54% from the prior year. Corporate bond issuance in Canada has been climbing since mid-2023, driven by a narrowing spread environment and the assumption that the Bank of Canada's tightening cycle had peaked. Companies that delayed refinancing through 2022 and early 2023 because of rate volatility came back to market once the curve stabilized. The result is visible in the data: more issuance, larger deal sizes, and a return of non-investment-grade paper that had been absent for quarters.
The mix tells you what kind of recovery this is. Debt issuance rising faster than equity issuance signals that balance-sheet repair and refinancing are still the dominant themes, not growth-stage risk appetite. IPOs are back, but they aren't leading. They're catching up.
What changed since last year
The first half of 2023 was a writeoff for Canadian capital markets. The TSX Venture Exchange, historically the feedstock for IPO activity, was trading near decade lows. Underwriters had skeletal IPO pipelines. Institutional investors were sitting on cash, waiting for rate clarity. The few IPOs that did price came at discounts and traded poorly afterward.
By early 2024, three things shifted. The Bank of Canada signaled it was done hiking. Equity volatility, measured by the VIX, dropped below 15 for the first time since early 2022. And the backlog of private companies that had delayed going public for two years started to clear. The combination of stable rates, lower volatility, and pent-up supply is what $3.5 billion in IPO proceeds looks like.
It's worth noting what didn't happen. There was no mega-deal that skewed the numbers. The largest Canadian IPO in the first half was under $500 million. The resurgence is broad-based: a higher deal count, not one or two outliers.
The second half will test whether this pace holds. Summer is historically weak for new issuance. If Q3 and Q4 match the first half's volume, 2024 will close as the strongest year for Canadian capital markets activity since 2021. If the pipeline stalls, it suggests the first-half surge was deferred activity, not a structural return of confidence.
For now, the data is clear. Canadian IPOs are pricing. Equity capital markets are functioning. Debt markets are open. That's not speculation. It's $89.4 billion in completed transactions.
The London Stock Exchange Group logged $89.4 billion in Canadian capital markets activity during the first half of 2024, a 68% jump from the same period a year earlier. That number, published in LSEG's mid-year review, isn't just a recovery story. It's proof that the drought is over.
IPO proceeds climbed to $3.5 billion across 27 transactions, up from $1.9 billion in the first half of 2023. The count matters as much as the dollar figure. Twenty-seven deals means underwriters are moving inventory, pricing risk, and finding buyers willing to commit capital to companies with no trading history. That's not a market on life support.
The equity capital markets portion of that activity hit $28.2 billion, a 115% increase year-over-year. Follow-on offerings and secondary raises accounted for the bulk of it, which makes sense. Companies that went public in 2021 or earlier, sitting on diluted share counts and burned-through cash, needed to refinance. The window opened. They used it.
Debt issuance carried the total
Debt capital markets contributed $61.2 billion, up 54% from the prior year. Corporate bond issuance in Canada has been climbing since mid-2023, driven by a narrowing spread environment and the assumption that the Bank of Canada's tightening cycle had peaked. Companies that delayed refinancing through 2022 and early 2023 because of rate volatility came back to market once the curve stabilized. The result is visible in the data: more issuance, larger deal sizes, and a return of non-investment-grade paper that had been absent for quarters.
The mix tells you what kind of recovery this is. Debt issuance rising faster than equity issuance signals that balance-sheet repair and refinancing are still the dominant themes, not growth-stage risk appetite. IPOs are back, but they aren't leading. They're catching up.
What changed since last year
The first half of 2023 was a writeoff for Canadian capital markets. The TSX Venture Exchange, historically the feedstock for IPO activity, was trading near decade lows. Underwriters had skeletal IPO pipelines. Institutional investors were sitting on cash, waiting for rate clarity. The few IPOs that did price came at discounts and traded poorly afterward.
By early 2024, three things shifted. The Bank of Canada signaled it was done hiking. Equity volatility, measured by the VIX, dropped below 15 for the first time since early 2022. And the backlog of private companies that had delayed going public for two years started to clear. The combination of stable rates, lower volatility, and pent-up supply is what $3.5 billion in IPO proceeds looks like.
It's worth noting what didn't happen. There was no mega-deal that skewed the numbers. The largest Canadian IPO in the first half was under $500 million. The resurgence is broad-based: a higher deal count, not one or two outliers.
The second half will test whether this pace holds. Summer is historically weak for new issuance. If Q3 and Q4 match the first half's volume, 2024 will close as the strongest year for Canadian capital markets activity since 2021. If the pipeline stalls, it suggests the first-half surge was deferred activity, not a structural return of confidence.
For now, the data is clear. Canadian IPOs are pricing. Equity capital markets are functioning. Debt markets are open. That's not speculation. It's $89.4 billion in completed transactions.
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