Exchange Insights from TSX and TSXV

A home away from home for companies outside of Canada

Canada provides access to capital – and a welcoming environment – for many companies located outside its borders. And the country’s premier equity exchanges, TSX and TSXV, provide a stable, well regulated and informed marketplace for their stock. In the first nine months of 2012, companies based outside of Canada raised over $5 billion in equity capital on TSX and TSXV, while 27 new international companies listed here.

Operating primarily in the mining and oil & gas sectors, about half of the 347 international listed companies on TSX and TSXV are based in the U.S. Others come from around the world, from Mexico to South Africa to China. Regardless of the location of their headquarters, these companies have recognized the advantages of listing on TSX and TSXV.

“For public companies seeking growth and expansion capital, TSX and TSXV are access points to North American markets,” says Loui Anastasopoulos, the exchanges’ vice-president of business development and company services.

By listing on TSX and TSXV, companies can participate directly in one of the world’s largest capital pools. They gain access to an expanded investor base while increasing their stock’s liquidity, visibility and valuation. They also effectively create a widely accepted currency – their listed securities – that could be used in an acquisition.

For resource companies, TSX and TSXV provide unparalleled opportunities. Last year, for example, 90% of the world’s mining equity financing transactions were done on TSX and TSXV, accounting for almost 40% of all mining equity capital raised.

TSXV is particularly well suited to smaller firms that recognize the value in listing on a regulated market tailored to early-stage companies. In TSXV, these firms find a marketplace that is widely respected as the world’s leading public venture capital marketplace.

With its strength, stability and unique offering, TSXV has attracted most of its 157 international listings from the U.S. Another 23% are based in China and Asia, while the rest are based in South America, Australia, Switzerland, the U.K., Israel and Africa.

Reflecting the vibrancy of the public venture market, many companies currently listed on TSX graduated from TSXV. Consider Colombian energy giant, Pacific Rubiales Energy Corp. (TSX:PRE). Now with a market capitalization of $7 billion, Pacific Rubiales initially listed on TSXV. It subsequently graduated to TSX and is also interlisted on two markets in South America.