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A Toronto-Dominion Bank (TD) sign is seen outside of a branch in Ottawa, Ontario, Canada, May 26, 2016.Chris Wattie/Reuters

Toronto-Dominion Bank took top spot for managing Canadian stock sales in 2016 as large energy deals led by pipeline operator TransCanada Corp. helped set a record for equity financings.

The amount raised from initial public offerings, secondary sales and equity-linked securities reached $50.4-billion, up 17 per cent from 2015, according to data compiled by Bloomberg. That eclipsed the previous record of $49.6-billion in 2009.

"I'd say 2016 was the year of the large deal – we had nine deals greater than $1-billion," said Sante Corona, head of equity capital markets at Toronto-Dominion's TD Securities. "It was also a big year on the energy side, with both oil-and-gas and energy infrastructure names raising significant amounts of equity capital to either finance growth or fund acquisitions."

TD Securities took top spot for managing Canadian equity sales for the first time since 2011, bumping Royal Bank of Canada to second. The firm arranged $9.43-billion of deals, followed by RBC Capital Markets with $9.04-billion, according to the data. Bank of Montreal was third at $6.47-billion, followed by Canadian Imperial Bank of Commerce with $5.42-billion. Bank of Nova Scotia managed $3.71-billion and National Bank of Canada had $2.5-billion.

Investment bankers anticipate 2017 will be another strong year for equity financing – albeit not at 2016's record-setting heights – with continued dominance from the energy industry and more financing fuelled by acquisitions, restructurings and recapitalizations. Canada's IPO market should rebound from what has been the slowest year on record in 2016, bankers say, with potentially a dozen initial offerings next year.

The number of equity-financing deals rose to 428 from last year's low of 332, the data show. The totals and rankings, which exclude preferred share sales and self-led deals, were current as of Dec. 28 and may change as more transactions are recorded.

About half of this year's deals involved energy companies, with two transactions from TransCanada accounting for $7.94-billion, or 16 per cent of deals over all. The pipeline operator's $4.42-billion offering in March was the largest sale in Canadian history and its $3.2-billion deal in November was the second biggest of the year.

Energy companies dominated the list of deals above $1-billion as Suncor Energy Inc. raised $2.88-billion in a June share sale and Enbridge Inc. amassed $2.3-billion in February. Hydro One Ltd., Canadian Pacific Railway Ltd., Encana Corp. and Franco-Nevada Corp. also had share sales above $1-billion.

Acquisitions and restructurings among energy firms will continue to drive activity next year, said Peter Miller, head of Canadian equity capital markets at Bank of Montreal. Deals will shift toward energy producers, and smaller firms and oil service companies will start tapping equity markets, he said.

"Energy will continue to be dominant, but we see it coming from different issuers, and we see M&A activity continuing," Mr. Miller said. "The one nuance where we see it different is on the IPO side, where '17 is going to look more like 2015."

Only two Canadian IPOs exceeded $100-million this year. Women's fashion retailer Aritzia Inc. was the largest, raising $400-million in September, while Mainstreet Health Investments Inc. reaped $109.3-million in a June offering. Aritzia shares gained 9.4 per cent since its debut.

Among companies expected to pursue IPOs in 2017 are Ember Resources Inc. and Canbriam Energy Inc., as well as luxury coat-maker Canada Goose Inc., people familiar with those firms' plans have said. Technology IPOs on the horizon include PointClickCare Corp., which is looking to raise $100-million in a U.S.-Canada listing, and real estate data firm Real Matters Inc. Restaurant chain Freshii filed documents Dec. 19 for an IPO expected to be around $100-million.

"We have a very, very healthy IPO pipeline, and one of the big reasons is the success of Aritzia," said Benoit Lauzé, head of equity capital markets at CIBC, Canada's top IPO arranger after leading Aritzia. "With lower volatility in the market and funds flowing from bonds into equities [after] the U.S. election, we think the pipeline for new names will grow."

More activity by materials firms and mining companies is possible next year, including carve-outs, spinoffs and IPOs, depending on commodity prices, said John McCartney, Scotiabank's head of global equity capital markets. That could make 2017 similar to 2016 for equity financing, he said.

"It would be difficult to match the levels of activity we saw on the energy side, but we do expect energy to continue to be quite busy," Mr. McCartney said.

"Some other segments that have been relatively quiet by historic standards will likely pick up the slack."

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