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Update on Capital Raising

October 8, 2014

We are now well past the half-year mark in 2014, buoyed by the continued strong performance of Canadian equity markets. Today, we look at how industry sectors have performed on Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) during the first eight months of this year, with a particular focus on equity capital raised.

As at August 31, 2014, companies listed on TSX and TSXV have raised more than $40 billion in equity capital, which represents a 44% increase compared to this time last year. TSX-listed companies, on average, raised $83 million, while TSXV-listed companies raised an average of $3.2 million. In terms of new entrants on TSX and TSXV, there have been 159 new listings so far this year, split equally between both exchanges. Companies are also using our two-tier exchange system to full effect, with 15 companies graduating to TSX from TSXV.

Looking at equity capital raised in individual sectors shows impressive year-over-year increases as at the end of August:

  • Clean technology and renewable energy – $1.5 billion in equity capital raised (up 89%) through 71 financings. This marks the sixth consecutive year where capital formation in the sector was above $1 billion.
  • Financial services – $7.9 billion in equity capital raised (up 122%) through 45 financings. This is the largest sector on TSX and TSXV by market capitalization.
  • Mining – $6.6 billion in equity capital raised (up 144%) through 988 financings. In the first half of 2014, TSX and TSXV ranked first in the world for equity capital raised in the mining sector.
  • Oil and gas – $7.9 billion in equity capital raised (up 214%) through 171 financings. The sector has already surpassed the total amount of capital raised in 2013. Half-way through 2014, TSX and TSXV ranked second in the world for equity capital raised in the oil and gas sector.
  • Technology – $2.7 billion in equity capital raised (up 104%) through 75 financings. This marks the third consecutive year where capital formation in the sector was above $1 billion.
  • Utilities and pipelines – $5.5 billion in equity capital raised (up 34%) through 14 financings. This is the fourth largest sector on TSX and TSXV by equity capital raised.

Equity Capital Raised by Sector on TSX and TSXV

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As at the end of August, the total market value of TSX and TSXV-listed companies was more than $2.6 trillion, an increase of 22% over last year. In fact, all of the sectors on the exchanges have seen their total market capitalization grow so far this year. A few noteworthy year-over-year market value increases have come in the following sectors: financial services (27%), diversified industries (18%), oil and gas (17%) and mining (11%).

The uplift in Canadian capital market activity in 2104 has also helped Canada's main market index edge higher. It is encouraging to see the S&P/TSX Composite Index continue to beat out all other major indices globally since the start of the year. Along with the S&P/TSX Venture Composite Index, both indices were in the top three for performance among major world indices during the first eight months of this year, and we hope this momentum continues.

Comparison of Major Index Performance

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Data and statistical information is courtesy of TMX's Market Intelligence Group (MiG), which provides monthly insight into your exchange. Click here to view the latest MiG Report (August 2014) and other lists. If you would like to have the MiG Report delivered directly to your inbox each month, please register here.

S&P is a trade-mark of Standard & Poor's Financial Services LLC and is used under license by TSX Inc.