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Bankers See Tumult Paving Rocky Road for Canada Equity Deals

  • Value of IPOs from Canadian companies is down 79% this year
  • Turbulent markets also cause 68% drop in equity deals
Updated on

Two top Canadian investment bankers predict that this year’s dearth of initial public offerings and other share sales will persist until central banks show progress fighting inflation and quelling market volatility.

Concerns that runaway inflation will prompt aggressive interest-rate hikes and squelch economic growth have roiled equity markets this year, sending the S&P/TSX Composite Index down 11% so far this year. While that decline is smaller than drops in the US and other equity markets, it has nearly frozen initial public offerings and share sales from Canadian companies.