Canadian Securities Exchange Reports Continued Strength in 2019
̶ Strong activity across diverse industries –
January 31, 2020 – Toronto, ON – The Canadian Securities Exchange (“CSE”) today announced strong performance metrics for 2019, with listings, financing, and trading activity in CSE-listed securities reaching the second highest levels in the exchange’s history. Furthermore, the CSE attracted more new listings than any other Canadian stock exchange.
Key 2019 Statistics
- The CSE had 569 listed securities as at December 31, 2019, an increase of 23% over 2018;
- Capital raised by CSE issuers totalled $3.2 billion, compared to $5.4 billion in 2018, and $1.4 billion in 2017;
- The aggregate market value of CSE issuers was $15.8 billion as at December 31, 2019;
- Total value of traded securities was $16.9 billion, compared to $19.5 billion in 2018, and $7.8 billion in 2017;
- Total trading volume was 19.8 billion shares, compared to 28.6 billion in 2018, and 17.4 billion in 2017; and
- CSE issuers completed 830 financings, compared to 904 in 2018, and 702 in 2017.
Of the 129 new companies listed on the CSE in 2019, 31 were initial public offerings (“IPOs”), which accounts for more than half of all the IPOs completed on Canadian exchanges during 2019.1 IPO activity on the CSE continues to underscore the exchange’s reputation as an efficient and cost-effective platform for companies bringing new issues to market.
Listings growth reflected an increase in the number of global issuers on the CSE, many of which are characterized by larger market capitalizations and advanced business plans. Since the start of 2018, more than two dozen companies with market capitalizations greater than $100 million have listed on the CSE, demonstrating the CSE’s ability to serve the needs of larger issuers. These listings contributed to a substantial increase of approximately 25% in the average value per share traded on the CSE in 2019.
Financing activity was strong across a broad range of industries during 2019. Cannabis and hemp companies continued to lead financing activity, completing a combined 333 deals, surpassing the record total of 311 for the sector in 2018. These companies raised a combined $2.6 billion of capital during 2019, accounting for 81% of the total capital raised on the exchange during the year. Financing activity was also solid among mining issuers, which completed 217 financings that raised $204 million. Cleantech financing reached record levels during the year, with a total of 46 financings that raised $56 million.
Engagement with domestic and international audiences continued to be a key objective in 2019. During the year, the CSE participated in more than 100 conferences and events in Canada and around the world. International highlights included the CSE signing a memorandum of understanding with the Jamaica Stock Exchange and the exchange welcoming its first three Israeli listings. Activities in 2020 will continue to emphasize the CSE’s focus on attracting global listings and investors, with events planned in the Americas, Europe, Israel, and Singapore.
The CSE achieved several operating milestones during the year, many within its specific mandate to increase visibility and access to the exchange and its listings. These included opening a new head office and Media Centre in First Canadian Place in downtown Toronto, and the relocation and expansion of its Vancouver office. With the new Media Centre capabilities, the CSE launched its first podcast – #HashtagFinance – as a platform to highlight issuers and thought leaders in the capital markets. Also launched at the Media Centre was the CSE Market Open ceremony for listed companies and valued exchange partners, providing another platform to celebrate company milestones and accomplishments.
“The Canadian Securities Exchange had another outstanding year in 2019,” said Richard Carleton, CSE Chief Executive Officer. “Our strong listings growth is evidence that our marketing efforts are paying off and entrepreneurs around the world are recognizing that we provide them with an ideal platform to access low-cost capital. While we are delighted to be attracting a high volume of new cannabis listings, including more advanced companies with substantial revenue and earnings, we continue to generate enormous interest from entrepreneurs across many industry groups. I am pleased to say that the listings pipeline is very strong going forward. We have a number of other exciting developments planned for 2020, including further enhancements to our service capabilities to meet the expanding needs of issuers of all sizes, and the expected designation of our issuers’ securities as being margin eligible.”
1 Excluding Capital Pool Companies and Special Purpose Acquisition Companies.
Richard Carleton, CEO