Equity financings totalled $12.06 billion in the third quarter of 2005, a gain of 9.6% quarter-over-quarter and 13.1% year-over-year, according to a report released today by the Investment Dealers Association of Canada.

For the first nine months this year, total financings were up 11.2% in value from the same period in 2004, the IDA said in its quarterly Review of Equity New Issues and Trading.

The financing landscape in the quarter — and year so far — has been dominated by the red hot income trust market. Trust issuance is not only up profoundly from last year’s levels, but has accounted for almost half of the industry’s total equity financings this year.

While this year’s trust party has been a hit, the good times may be coming to an end with Ottawa’s controversial plan to halt advance tax rulings on trust conversions. Nevertheless, with three quarters down, the industry is on track to surpass last year’s record pace of equity financings – barring any major surprises in the fourth quarter.

Common share equity issuance stood at $5.3 billion in Q3 2005, up 28.8% from Q2 2005 but down 16.9% from Q3 2004. For the first nine months, common issuance was down 19.1% from the same period in 2004.

Income trust unit issuance totaled $5.65 billion in the third quarter, down 1.6% quarter-over-quarter, but up 111.5% year-over-year. For the year-to-date, trust financings were up 56.1% over the same period a year ago.

Preferred share financings stood at $0.88 billion in Q3, up 30.7% quarter-over-quarter and 44.1% year-over-year. For the year-to-date, preferred financings were up 63.5% over the same period a year ago.

Volume on the Toronto Stock Exchange was 16.1 billion in Q3, down 15.8% from Q2 2005. For the first nine months, total trading volume on the TSX was up 21.6% from the same period in 2004.

The full report is available on the IDA web site.