Miners continue flocking to stock exchanges in Toronto to raise capital, accounting for 70% of company issuers and more than 50% of the C$15 billion ($16.17 billion) equity raised in the year to 31 August 2024.
Of the 156 new listings on the TSX (103) and TSX-V (53) during the period, 39 were mining companies, although exchange-traded funds (ETFs) accounted for 89 overall listings, while eight Special Purpose Acquisition Corporations (SPAC) and Capital Pool Companies (CPC) also listed.
The popularity of ETFs – a security that typically tracks a stock index or sector – has grown substantially over the past few years.
ETFs track a commodity, bond, or a range of assets that are traded on the stock market, so buying an ETF means buying the shares of a portfolio that tracks the yield and return of its corresponding index or asset.
In September 2024, the TSX had 13 new issuers compared with 17 in August and 10 in September 2023. Last month’s new listings included 12 ETFs and a utilities and pipelines company.
In July, there were 10 new issuers compared with 12 in the previous month, and 17 in July 2023.
Total financings raised in September plummeted 64% compared to the previous month, and were down 90% compared to September 2023. Total financings last month were 31, compared with 44 in August and 29 in September 2023.
In its August Market Intelligence Group report, TMX Group data shows the average financing size on the TSX is C$42 million and C$3.3 million on the much smaller TSX-V.
As of 31 December 2023, there were 244 international companies listed on the TSX and TSX-V – 126 were domiciled in the US, while 21 originated from Australia, New Zealand, and Papua New Guinea.
During that five-year period, 36% of the mining equity capital raised and 48% of mining financings globally were on TSX/TSX-V.
TSX-V on the other hand had five new issuers in September, the same as in August, compared with three in September 2023.
Last month’s new listings were three mining companies, one technology, and one oil and gas company.
Total financings raised last month also decreased 6% compared to August, but were up 113% compared to September 2023.
Headquartered in Toronto, TMX Group originated from the Toronto Stock Exchange, which was founded in 1861, initially listing 18 stocks. By the end of the 1990s, TSX was the national exchange for senior equities.
Today, TMX is an integrated, multi-asset class exchange group whose subsidiaries operate cash and derivative markets and clearinghouses for equities, fixed income, and energy.
It provides services and data products to the international financial community.
Write to Adam Orlando at Mining.com.au
Images: iStock
