If anyone needs proof that Canada iss in the midst of a re-invigorated tech boom, they should look no further than the Toronto Stock Exchange.
Since the start of this year, 16 new technology/innovation companies have gone public on the TSX/TSXV (to the end of May) representing nearly 60 per cent of all corporate IPOs and new listings on the country’s exchanges. These companies represent a mix of businesses from the technology (8), life sciences (6), and cleantech (2) sectors. They also include a mix of smaller companies (13 listings on TSXV) and larger businesses (3 listings on TSX). The activity in the technology/innovation sector in 2016 continues a multi-year trend on TSX/TSXV.
Since the beginning of 2015, the TSX and Venture Exchange has seen 45 initial public offerings and new listings in the technology/ innovation space, with an additional six companies graduating to the senior exchange.
With that continued growth, it is no surprise that the appetite for new technology stories continues to grow. This was demonstrated by the impressive turn out for the eighth annual Tech Day held recently in Toronto, co-hosted by NATIONAL Equicom and the TMX group.
The morning sessions that ran over two days in Toronto – with additional sessions in New York and Vancouver – hosted 45 public and private companies of all sizes from start-ups to companies with a market cap of $1 billion, covering the gamut of the tech world from fintech and app companies to software and hardware.
The all-Canadian list included Equicom clients BSM Technologies Inc. (TSX: GPS), Solium Capital Inc. (TSX: SUM), and TECSYS Inc. (TSX: TCS). Overall, more than 350 people attended the events.
Tech Day, which has run for eight consecutive years in Toronto and seven in Vancouver, gives companies the opportunity to build a profile in the investment community.
Technology has been one of the fastest growing sectors on the TSX and TSXV over the past few years, according to the TMX Group. The latest statistics, ending May 31, show that more than 420 technology/innovation companies are listed on the two exchanges, at all stages of development, and more than 185 of these are technology companies. Since the start of 2014, 40 technology companies have gone public on the TSX and TSXV and the tech sector now accounts for more than C$80 billion total market capitalization.
Investors have prospered from investing in the Canadian tech sector. The S&P/TSX Tech index has outperformed the Canadian benchmark index over the past one-, three-, five- and 10-year periods (to the end of May). The same index has also outperformed the S&P 500 over the last one-, three-, and 10-year periods (also to the end of May).
