While 2017 saw a revival of initial public offerings in Canadian mining and metals, investment bankers aren’t optimistic that IPO activity will be as brisk in 2018.
“It doesn’t feel like there is a very long list of companies waiting to IPO,” said Michael Faralla, head of global mining with TD Securities Inc.
Mr. Faralla cited the current lukewarm market for secondary mining-equity issues, which went off the boil in the second half of the year. The secondary market acts as a leading indicator for demand for shares in new public companies. “There were fewer deals and I think they struggled,” he added.
After being dormant in 2016, Canadian mining initial public offerings sprang back to life in 2017, with about $830-million raised, according to Thomson Reuters data, the strongest market since 2010, when mining IPOs raised $1.2-billion.
In October, Luxembourg-based Nexa Resources SA raised $570-million (U.S.) in a dual listing in Toronto and New York. It was the third-biggest mining IPO ever on the Toronto Stock Exchange.