During the first seven months of 2017, three VC-backed and four PE-backed Canadian companies went public by way of initial public offering (IPO) on the Toronto Stock Exchange (TSX) or currently on the New York Stock Exchange (NYSE), raising CDN $1.33 billion in aggregate gross proceeds from treasury and secondary offerings.
How well are they performing now?
As of July 31, 2107, VC-backed companies were all trading under their offering prices, with Zymeworks Inc. (TSX/NYSE: ZYME) leading the pack and having lost almost half of its stock value. Freshii Inc. (TSX: FRII) and Real Matters Inc. (TSX: REAL) lost 12% and 23% in stock value respectively.
With disappointing performance by Zymeworks, recent “biotech euphoria” driven by huge biotech deals such as the US $55 million financing by Milestone Pharmaceuticals, $36 million financing by PreciThera and US $68 million financing by Repare Thearapeutics, may need a reality check.
It is worth noting that Zymeworks IPO was largely driven by existing investors/shareholders which bought 3,017,690 (67%) of the 4,500,000 common shares being offered.
Although based on a very small sample, we have a very interesting and opposite trading phenomenon for PE-backed IPOs: US PE backed IPOs are outperforming while Canadian PE backed IPOs are lagging and trading below offering price.
TriWest Capital Partners backed Source Energy Services Ltd. (TSX: SHLE) and ARC Financial backed STEP Energy Services Ltd. (TSX: STEP) have lost 29% and 6% stock value since their IPOs.
US PE-backed IPO are the stars and bright spots for Canadian PE IPOs. Bain Capital backed Canada Goose Holdings Inc. (TSX/NYSE: GOOS) and CCMP Capital Advisor backed Jamieson Wellness Inc. (TSX: JWEL) have seen their stock price trading up by 40% and 17%.
Download PDF version of the table chart HERE
We are Canada’s only data provider that specifically tracks and provides metrics on venture capital investments by investor type, by source of funding, and fundraising activities.
We provide trusted, unbiased (without undue industry influence), and verified private and public market news and intelligence to all industry stakeholders
Latest posts by CPE Media Analytics (see all)
- First Half VC on torrid pace with 264 financings for $2.9B – CPE Media Analytics - August 28, 2019
- Chinook Therapeutics closes US $65M Series A led by Versant Ventures - August 22, 2019
- First Half of 2019 IPO Results - August 19, 2019