Canadian equity issuance tanked in the third quarter (Q3) while debt underwriting also declined, according to a new report from Thomson Reuters Corp.
Specifically, equity issuance plunged by 63.9% in Q3 compared with the previous quarter, in terms of deal value, while the number of deals was down by 57.1%.
Total equity issuance through the nine months ended Sept. 30 was $31.9 billion, which was down by about 20% compared with the same period a year ago — although the total number of deals was up by 4.4% during this time.
Almost half of the equity raised so far this year is in the energy and power sector, which has generated proceeds of $15.5 billion. The materials sector is a distant second, with a 12% share; followed by real estate, at 10%.
In terms of the equity underwriting league tables, RBC Capital Markets led the way as it ranked as the top underwriter in overall equity deals, secondary offerings, initial public offerings and common stock deals. CIBC World Markets was tops in retail structured products and preferred securities.
Meanwhile, overall Canadian debt issuance was down by 13.8% while total proceeds also fell in Q3 vs the previous quarter. However, for the year to date, total proceeds were up by 12.2% from last year to $140.5 billion.
Just less than half of the new debt issuance is in government and agency debt. The financial services sector is by far the top corporate issuer, accounting for 32% of the overall proceeds, followed by the energy and power sector at 9%.
Here, again, RBC Capital Markets tops the underwriting league tables, leading the way on overall debt issuance, corporate debt and cross-border transactions. National Bank of Canada ranked first in government debt underwriting while TD Securities Inc. led in corporate Maple debt.
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