Canadian stock market operator TMX says IPO window shrinking

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Macro issues and the upcoming U.S. election are keeping capital on the sidelines,

Canada’s main stock exchange operator TMX Group is urging companies seeking to list on its platform to accelerate their plans, a top exchange official said, citing an uncertain economy and next year’s U.S. presidential election as factors shrinking the window of opportunity.

TMX is a destination for small to medium global energy and mining companies to raise equity, with close to 50% of index dominated by those two sectors. “There is a pipeline out there that’s waiting for the right time to enter the market,” McPherson said. “And our advice to those companies is it’s best to not just wait but have your entire ducks in a row if you will, so the when the window of opportunity opens, you don’t have to start from scratch.”

“The pipeline looks excellent. Timing looks questionable,” McKenzie said, adding the recent uptick in U.S. IPO activity provides “good momentum” that will help Canadian IPO hopefuls.

 

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