The Globe and Mail reports in its Friday, Oct. 24, edition that the initial public offering market has
taken off in a big way this year, says BMO Nesbitt Burns director David Wismer. The Globe's Niall McGee writes that
in the United States
there have been 48 new public
technology company listings so
far in 2014, worth $38-billion
(U.S.). During the entirety of 2013,
only 43 tech companies listed on
U.S. exchanges, raising a mere
$9-billion (U.S.).
Canada is no slouch either,
boasting a number of marquee
tech sector IPOs this year. In June,
Kinaxis raised $116-million
(Canadian), making it the biggest
one on the TSX this year. In
April, Lumenpulse Lighting
went public and took in $115-million (Canadian).
Mr. Wismer says that one of the
best pieces of advice he can give
any company considering a public
listing is, wait. Stay private and
wait to do an IPO until the company
is big enough, he argues.
That might seem like odd advice
from a banker, but Mr. Wismer
says that by waiting until a company
reaches a decent size, the
public appetite for an offering
will be that much greater. One of the best ways
to guarantee liquidity is to get
big. He says, "Size does matter."
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