The number of Canadian initial public pfferings (IPOs) slowed on AIM, a market operated by the London Stock Exchange, in the first quarter of 2007, according to the Canadian AIM IPO survey released today from PricewaterhouseCoopers (PwC).

There were two new listings in the first quarter compared to five in the same quarter last year.

“After a record year in 2006, the market has cooled off somewhat, as investors appear to be more cautious. This decline in Canadian AIM listings is consistent with the overall AIM market trends we are seeing,” says Ari Sahakian, a director with PwC’s Transaction Advisory Group. A similar PwC survey of IPO activity on the TSX and TSX Venture Exchanges for the first quarter of 2007 also showed a decline with the total number of new offerings falling to 20 from 34 in the same period of 2006.

Overall AIM activity declined in Q1 2007- 49% compared to the same period last year and 54% over the fourth quarter of 2006, according to the PwC IPO Watch Europe Survey Q1 2007. However, in Canada, the number of AIM listings in Q1 2007 was on pace with the prior quarter, where there were also two Canadian IPOs.

While the number of first quarter Canadian AIM listings was down in 2007 versus 2006, the amount of money raised in Q1 2007 (70M pounds) exceeded Q1 2006 (25M pounds). The main reason for this was that only one of the five companies that listed on AIM in Q1 2006 raised financing upon admission.

Sahakian adds: “The two new Canadian listings during the quarter were Nautilus Minerals Inc. and Redknee Solutions Inc. However, Bema Gold Corporation de-listed as a result of being acquired by Kinross Gold Corporation bringing the total number of Canadian issuers on AIM at March 31, 2007 to 44 or 14.5% of the 304 international companies listed on AIM. This is on-par with Australia’s 14.5% share of listings, leading all international issuers.”

The total market capitalization of all AIM issuers was up to £101.7 billion at March 31, 2007 versus £90.7 billion at Dec. 31, 2006. Canadian companies listed on AIM at March 31, 2007 had a market capitalization of £10.8 billion, a 13.9% increase during Q1 2007, with four out of the six industry groups advancing. The top performing industry group was mining at 16.8%, while industrial products and life sciences were the biggest decliners at negative 26.8% each. The technology and media industry group advanced 10.3%.

“Even though the London Stock Exchange announced a number of regulatory changes for AIM in February of 2007, which included a codification of the roles and responsibilities of the Nominated Advisor, based on existing market practises, and an enhanced disclosure regime for AIM companies, Canadian companies can still take advantage of attractive valuation and financing opportunities combined that AIM provides,” Sahakian notes. “Furthermore, the second quarter of 2007 looks to be off to a good start for Canadian AIM listings, with two companies already listing in April 2007.”