Capital Markets and Mergers & Acquisitions Bulletin
Canada's private investment in public equity (PIPE) market continues to evolve and grow increasingly sophisticated.
Our fifth annual PIPE (Private Investment in Public Equity) Deal Point Study provides detailed insights from Canadian PIPE deals in 2023 greater than $10 million in value.
Our key findings reveal several notable trends, including:
- The mining industry dominated, representing 50% of deals.
- Although most deals involved common equity, debt and convertible debt were collectively much more frequent than in any of our previous studies.
- The frequency of investor voting rights, information rights and ancillary business rights all increased significantly and each hit the highest marks seen over our five studies. The apparent counterbalance was a sharp spike in standstills.
- The average market capitalization of the target, the average transaction amount, and the TSX's share of transactions were all at their lowest levels over our five studies.
- Regarding investor residency, the clear overall trend across our five studies is a steady decrease in Canadian and European-based investors and a steady increase in U.S.-based and other foreign investors.
The overall picture painted is a hardening of certain trends as well as a year characterized by several extremes (relative to past samples).
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