October 6, 2021
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WE ARE LIVE.
Qualified Canadian Readers Only.
There’s nothing quite like sitting down with a suspiciously lukewarm to room temperature mug of coffee in the evening, the dark room lit only by the backlight of your monitors. Knowing you have many more an hour to endure, you sit back and just stare at your screens. For a moment, your thoughts escape you. But then, something comes back. “It’s live deal season”, you mutter to yourself. This is the life. This is what dreams are made of.
Heading into October, I took note of the new issue market’s disappointingly low activity levels. This doesn’t appear likely to change anytime soon. With the recent market volatility, this isn’t awfully surprising. Still, I think it’s worth noting that while the number of issuers tapping the markets isn’t nearly what it was in the early innings of this year, this hasn’t stopped a select few larger players from trying to raise larger sums of capital.
Power Financial, for instance, hit the market today with a C$200M bought deal of first preferred shares. Elsewhere, Topaz Energy is also live on a C$132M bought deal of commons. But the real action this week seems to be coming not from secondaries, but from good ol’ fashioned IPO land.
Propel Holdings, a subprime lender, launched on a C$60M IPO of commons on the TSX. The deal is being led by the folks over at Canaccord and Scotia. This is a niche industry / sector and, given the shaky appetite for financial assets at the moment, it will be interesting to see how this one lands on the other side.
Today also marked the beginning of Tricon Residential’s foray into the U.S. capital markets. This Canadian-based owner & operator of single-family homes and multi-family apartments is looking to dual list onto the NYSE. The company is raising ~US$395M of commons in its U.S. IPO, with Morgan Stanley, RBC, Citi, and Goldman managing the books. A powerhouse of a syndicate; clearly, Tricon isn’t taking any chances here and has made it clear it does not intend to follow in the footsteps of other Canadian issuers who have failed to dual-list as of recent.
ECM World
Top 5 Notable Transactions
Power Financial Corp.
$200M bought deal of preferred shares
BMO w/ RBC, Scotia
Topaz Energy
$132M bought deal of commons
Peters w/ National
Propel Holdings
$60M IPO of commons
CG w/ Scotia
Cheers,
G.G.