Canadian IPOs returned in the first half of 2024, and debt offerings climbed alongside them
Seven companies went public on Canadian exchanges in the first six months of 2024, raising $659 million. That's not a boom by historical standards, but it matters because the prior 18 months had been a near-total freeze.
The data comes from the London Stock Exchange Group's latest capital markets report, and the numbers tell a story about timing. Canadian equity issuance overall hit $7.7 billion in the half, up 63% from the same period in 2023. The IPO market came back to life, and secondary offerings followed. Companies that had postponed raises in 2022 and 2023, when interest rates were climbing and valuations were contracting, found windows again. The question is whether those windows stay open or slam shut the next time macro sentiment shifts.
Debt issuance climbed faster than equity
On the debt side, Canadian issuers raised $116.9 billion across the half, a 21% increase year-over-year. Investment-grade corporate bonds accounted for the largest share at $47.3 billion, up 35%. High-yield issuance remained thin at $1.9 billion, roughly flat. This mirrors what you'd expect in a rate environment where borrowers with good credit can still access capital but speculative-grade names face punishing spreads.
The provincial and municipal bond market contributed $41.2 billion, a 23% rise. Provinces were refinancing existing debt and funding infrastructure commitments deferred during the pandemic. Federal government issuance added another $16.9 billion. The overall debt picture is one of volume recovery without a credit quality shift. Firms with balance sheets strong enough to handle higher rates issued. The rest waited.
Three factors explain the resurgence. Central banks paused rate hikes by mid-2023, and forward curves started pricing cuts by early 2024. That didn't mean rates fell immediately, but the expectation of a peak gave CFOs permission to move. Second, private credit markets, which had absorbed some of the demand during the public-market drought, began showing capacity constraints. Borrowers who thought they could avoid public scrutiny by staying private found fewer lenders willing to write nine-figure checks at reasonable terms. Third, the backlog mattered. Companies that had delayed raises for two years hit points where the delay itself became the bigger risk than the cost of capital.
What the rebound left out
The recovery was uneven by sector. Technology and resource issuers accounted for a disproportionate share of the equity raises, while real estate and consumer discretionary names stayed quiet. Real estate investment trusts, in particular, faced a valuation problem: their cost of equity capital remained higher than their asset yields, making new equity raises dilutive. Until property fundamentals improve or rates drop further, that sector stays on the sidelines.
The LSEG report also flags that while IPO counts rose, the median deal size remained below pre-2022 levels. The seven IPOs that priced were mostly mid-cap names, not the large, brand-name debuts that generate sustained momentum. Investors returned, but cautiously. Allocations went to companies with near-term profitability or clear paths to it. Growth stories trading on narrative alone did not price.
The second half will hinge on whether central banks actually cut rates and whether macroeconomic data, particularly employment and inflation prints, stay stable enough to keep volatility low. If the environment holds, the backlog of deferred offerings could support another $5 billion to $8 billion in equity issuance before year-end. But calling this a durable reopening rather than a temporary thaw requires more than one good half.
Seven companies went public on Canadian exchanges in the first six months of 2024, raising $659 million. That's not a boom by historical standards, but it matters because the prior 18 months had been a near-total freeze.
The data comes from the London Stock Exchange Group's latest capital markets report, and the numbers tell a story about timing. Canadian equity issuance overall hit $7.7 billion in the half, up 63% from the same period in 2023. The IPO market came back to life, and secondary offerings followed. Companies that had postponed raises in 2022 and 2023, when interest rates were climbing and valuations were contracting, found windows again. The question is whether those windows stay open or slam shut the next time macro sentiment shifts.
Debt issuance climbed faster than equity
On the debt side, Canadian issuers raised $116.9 billion across the half, a 21% increase year-over-year. Investment-grade corporate bonds accounted for the largest share at $47.3 billion, up 35%. High-yield issuance remained thin at $1.9 billion, roughly flat. This mirrors what you'd expect in a rate environment where borrowers with good credit can still access capital but speculative-grade names face punishing spreads.
The provincial and municipal bond market contributed $41.2 billion, a 23% rise. Provinces were refinancing existing debt and funding infrastructure commitments deferred during the pandemic. Federal government issuance added another $16.9 billion. The overall debt picture is one of volume recovery without a credit quality shift. Firms with balance sheets strong enough to handle higher rates issued. The rest waited.
Three factors explain the resurgence. Central banks paused rate hikes by mid-2023, and forward curves started pricing cuts by early 2024. That didn't mean rates fell immediately, but the expectation of a peak gave CFOs permission to move. Second, private credit markets, which had absorbed some of the demand during the public-market drought, began showing capacity constraints. Borrowers who thought they could avoid public scrutiny by staying private found fewer lenders willing to write nine-figure checks at reasonable terms. Third, the backlog mattered. Companies that had delayed raises for two years hit points where the delay itself became the bigger risk than the cost of capital.
What the rebound left out
The recovery was uneven by sector. Technology and resource issuers accounted for a disproportionate share of the equity raises, while real estate and consumer discretionary names stayed quiet. Real estate investment trusts, in particular, faced a valuation problem: their cost of equity capital remained higher than their asset yields, making new equity raises dilutive. Until property fundamentals improve or rates drop further, that sector stays on the sidelines.
The LSEG report also flags that while IPO counts rose, the median deal size remained below pre-2022 levels. The seven IPOs that priced were mostly mid-cap names, not the large, brand-name debuts that generate sustained momentum. Investors returned, but cautiously. Allocations went to companies with near-term profitability or clear paths to it. Growth stories trading on narrative alone did not price.
The second half will hinge on whether central banks actually cut rates and whether macroeconomic data, particularly employment and inflation prints, stay stable enough to keep volatility low. If the environment holds, the backlog of deferred offerings could support another $5 billion to $8 billion in equity issuance before year-end. But calling this a durable reopening rather than a temporary thaw requires more than one good half.
Read Next
Trump visits Michigan as tariffs strain cross-border projects and trade
Canadians Are Wrong to Think the Economy Is Recovering
Drake's Penthouse Sold for $6.7 Million. What Toronto's Celebrity Real Estate Actually Reveals.
Canada's ETF market approaches $1 trillion as investors abandon active management