The Globe and Mail reports in its Saturday edition the headlines tell you that
2015 has been a banner year
for Canadian initial public offerings. The Globe's David Milstead writes in the first six months, 10
companies have made their
debut on the Toronto Stock Exchange versus nine in
all 12 months of 2014. Shopify and a
handful of other companies produced
handsome first-day pops
for those lucky enough to get in
on the offering. What this means for the average
retail investor, however, is
decidedly more mixed.
Shopify soared 51 per cent on its first day, Swiss
Chalet parent Cara Operations
added 43 per cent, Stingray Digital Group added nearly 18 per cent and janitorial
company GDI Integrated Facility
Services gained 16 per cent.
In a number of cases, however,
comparing their advances from
that first-day closing price to the
index reveals less-rewarding
returns. The best performer is one that
generated little heat on its
launch: Fairfax India Holdings, an offshoot of giant Fairfax
Financial, which fell 2 per cent
from its $10 offering price on its
first day of trading in January. It
closed June 29 at $11.50, meaning
it has beaten the composite by more
than seven percentage points.
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