Scotiabank returns as top equity arranger
TORONTO — Bank of Nova Scotia was Canada’s top arranger of stock sales for the first time since 2002 after exclusively leading offerings for Manulife Financial Corp. and Veresen Inc. in a year fuelled by energy financings.
Canadian stock sales climbed to a four-year high of $34.5 billion US last year, with oiland-gas firms accounting for about 35 per cent of the total, according to data compiled by Bloomberg. The amount companies raised through Canadian initial public offerings, secondary sales and convertible debentures inched up from $34.1 billion in the prior year, the data show.
“Energy was a significant contributor to the activity level both in terms of acquisition finance and also IPOs and follow-on offerings,” said John McCartney, managing director and head of global equity capital markets at Scotia Capital.
“We were on our way to surpassing the record issuance of 2009, but a very quiet final quarter of the year had us fall short.”
Crude oil plunged 54 per cent from a June 20 high amid a glut in supplies and a battle for market share between the U.S. and Organization of Petroleum Exporting Countries. Surging production and slower-thanexpected demand growth also contributed to the rout, which saw oil-and-gas producer Teine Energy Ltd. push back the timing of its IPO.
Scotiabank was credited on 33 deals for $5.1 billion in 2014, while Royal Bank of Canada’s RBC Capital Markets, which previously held top spot for two straight years, ranked second with 44 deals for $4.86 billion, the data show. Scotiabank, the country’s third-biggest bank by assets, hasn’t ranked higher than second since 2008.
Bank of Montreal’s BMO Capital Markets fell to third from second, with 51 sales for $4.28 billion.
Canadian Imperial Bank of Commerce was fourth with $3.9 billion of sales, edging past fifth-ranked TorontoDominion Bank’s TD Securities by less than $1 million.
The figures and rankings, which exclude preferred share sales and self-led deals, were current as of Tuesday and may change as more transactions are recorded.