In a normal market, the news that Aritzia Inc.'s initial public offering was boosted to $400-million because of strong institutional demand would be stellar news. "Risk on," we'd say. The end of investor dithering.
But this is not a normal market and it hasn't been for a long time. Despite scorching share prices in many sectors, which normally make investors more aggressive, would-be buyers are still showing their thirst for safe and stable yield.
The effect is a double-edged sword. Canadian companies desperate for fresh funds, particularly those in resources, must find ways to please these fickle investors while issuers who can afford to cough up healthy payouts have seen their financing windows fly open. Story
Mining bankers on track for banner year
Amid a boom in Canadian equity issuance, mining is a big standout this year, providing a crucial shot in the arm for bank-owned and independent broker-dealers alike.
Overall equity issuance is up 24 per cent year-over year in Canada to $40-billion, according to Bloomberg data. All of the major sectors have seen sizeable increases. Energy is on top with $19.5-billion in financings. Notable transactions include Encana Corp.'s recent $1.3-billion marketed secondary offering, and Suncor Energy Inc.'s $2.9-billion bought deal, announced in June. Story
Lendified receives OSC approval to tap new investors for loan funding
A Canadian fintech company is set to become the first online lender in the country to receive regulatory approval for so-called marketplace lending, which will connect investors to the borrowing needs of small businesses.
Toronto-based Lendified Holdings Inc. – part of a wave of financial technology firms that are promising to disrupt traditional banking activities – currently underwrites loans with its own balance sheet and a $20-million line of credit arranged through Liquid Capital Corp. Story
DAILY DEALS
Disney considers offer for Twitter
Walt Disney Co. on Monday emerged as another potential bidder for Twitter Inc., the struggling social-media service, people familiar with the matter said.
Twitter, with a stock-market value of about $20 billion, has also held preliminary talks with Salesforce.com Inc., according to people familiar with the matter.
The sale process is in early stages and it is far from guaranteed that anyone will end up buying Twitter. Story
IN CASE YOU MISSED IT
Jeffrey Jones: Slimmed-down Paramount sells Seven Generations shares. Story
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