Author(s):
Jeremy Fraiberg, Alex Gorka, Ben Fickling
Dec 11, 2023
Canadian initial public offering (IPO) activity boomed from 2018 to 2021, with transaction volumes peaking in 2021. A sizeable number of these IPOs were from technology-based companies that benefited from high valuations during the pandemic. By contrast, the last two years have been challenging for capital markets generally. This has especially been the case for many issuers that went public during the 2018-2021 period. A substantial number of these issuers are trading well below their IPO prices, making them potentially attractive targets to be taken private. Several issuers have already undergone such transactions. Others have announced strategic review processes, which often lead to sale or going private transactions. With significant share price declines, there is certainly a case for a number of new or recent public companies to consider a going private transaction. Doing so will require the board’s due consideration of a variety of important matters, including, in particular, overseeing conflicts of interest...
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