Exchange Insights from TSX and TSXV

Domestic market, global focus

Innovative Canadian companies raise equity capital on TSX

Lumenpulse lights up the Canadian IPO market

From Amherst, Massachusetts, to Sölvesborg, Sweden, a Canadian company called Lumenpulse Inc. (TSX:LMP) has applied its advanced technology to keeping darkness at bay in innovative ways.

Lumenpulse

Lumenpulse incorporated LED technology into the Sölvesborg Bridge in Sweden. Photo: Olof Thiel

With more than 225 employees in three countries, Lumenpulse works with architects, electrical engineers and lighting designers to develop specification light-emitting diode, or LED, lighting for commercial, institutional and urban applications.

In April 2014, Lumenpulse raised $100 million in an initial public offering on TSX, about 33% more than the company had originally targeted.

“We appreciate the strong interest from investors and the confidence our new shareholders have shown in our company,” says founder and CEO François-Xavier Souvay. “[Our IPO] is an extremely important step towards our goal of becoming a world leader in high-performance and sustainable specification-grade LED lighting solutions.”

Over the last eight years, the company has developed LED lighting solutions for projects such as Chicago’s Solider Field, the headquarters of General Motors in Detroit, BC Place Stadium in Vancouver and The Shard in London, U.K. In Sölvesborg, Sweden, about 400 km south of Stockholm, Lumenpulse incorporated its LED technology into the 750-metre Sölvesborg Bridge, the longest bicycle and pedestrian bridge in Europe. At Amherst College, in Massachusetts, Lumenpulse helped in retrofitting a 45-year-old recital hall to LED lighting and smart digital technology.

Founded in 2006, Lumenpulse maintains its head office in Montreal and branch offices in Boston and London, U.K.

Global companies turn to DIRTT for sustainable architectural solutions

Based in Calgary, with facilities in Kelowna, British Columbia, Savannah, Georgia, and Phoenix, Arizona, DIRTT Environmental Solutions Ltd. (TSX:DRT) uses advanced 3D software to create architectural interiors for the corporate, government, education and health-care sectors.

DIRTT

DIRTT created a fully customized solution for a Brazil-based multinational oil and gas company.

Founded in 2004, the company has attracted customers throughout the world, including Fortune 500 companies such as Google, Apple, Bank of America and eBay. DIRTT is also one of the first “B Corporations” to go public. B Corps, as they are commonly known, are certified by B Lab, a U.S.-based not-for-profit organization, according to standards involving the environment, community, employees, governance and accountability.

In November last year, DIRTT – which stands for Doing It Right This Time – raised almost $40 million, after fees and expenses, in an initial public offering on TSX. The company plans to use some of the money raised to prepay debt. It will use the remaining funds for product development, sales and business development and to develop its proprietary software.

DIRTT currently has a total market capitalization of more than $230 million, employs about 760 people and generated revenues of $140 million in 2013.

TSX and TSXV: Global leader in clean technology and renewable energy

More companies in the clean technology and renewable energy sector are listed on TSX and TSXV combined than on any other exchange group in the world. With a total market capitalization of more than $24 billion, these 116 companies have raised more than $1 billion in equity capital for five consecutive years.

Through TSX and TSXV, companies in the sector gain access to investors throughout the world. An estimated 40% of all trading on the exchanges originates outside of Canada. With 124 equity analysts covering the sector, each company is followed by an average of two analysts.

More than 25% of companies in the sector on TSX are graduates of TSXV. The two exchanges are structured to accommodate growing companies at almost every stage of their development, giving small companies the opportunity to grow on TSXV before graduating to the senior board, TSX, as they mature.

Clean technology and renewable energy sector during the first quarter of 2014

TSX Venture Exchange (TSXV)

Toronto Stock Exchange (TSX)

TSXV and TSX

Number of Listed Companies

74

42

116

Quoted Market Value (C$ Billions)

1.1

23.3

24.4

New Listings

1

1

Equity Capital Raised (C$ Millions)

16.5

514

530

Number of Financings

17

8

25

As of March 31, 2014
FILED UNDER: