An exchange that became virtually synonymous with mining and metals during a decade long bull market in resources is parlaying its strength into innovation.
The analytics team at the TSX published its latest data report last week. The numbers, which are current to April, show that the movement to the innovation sectors continues to pace the markets. The total value of companies in this sector as a whole has increased by a whopping 77% since the start of 2013.
The big question for the TSX is could the exchange, whose fortunes rose sharply with the mining bull market and the relative outperformance of Canada as a whole following the 2008-2009 global recession, survive without copper, gold and silver contributing to outsized gains? The answer appears to be a resounding yes. The TSX and its upstart sibling TSX Venture Exchange are now ranked third globally for capital raised across all sectors since the beginning of 2012. This puts it behind the NYSE and Nasdaq, but ahead of notables such as London, Hong Kong and China.
“Toronto Stock Exchange continues to support the growth of great Canadian innovation companies,” said Ungad Chadda, Senior Vice President, Toronto Stock Exchange. “We’re pleased to see continued strong growth, performance and investor support across the technology, clean technology, and life sciences sectors.”
A total of $18.7-billion has been raised on the TSX and the TSX Venture so far this year. The average size of a financing on the junior exchange is $3-million and $80.4-million on the big board, perhaps lending some creedence to an idea that has been speculated on in these pages; that the TSX Venture Exchange represents a huge source of unmeasured venture capital in the country. TSX and TSXV financings have increased 55% over the same period last year.
The innovation sectors, which are comprised of the technology, cleantech and life sciences subsectors, have contributed 12 IPOs so far in 2014, more than any other sector. Names such as Lumenpulse, which raised $115-million in its offering and Knight Therapeutics, which raised $180-million, grabbed headlines across the country.