B.C. sees continued growth in market capitalization and capital-raising
Vancouver – The total market value of British Columbia’s public companies grew 14 per cent in 2021, reaching a record high, according to a new report by the British Columbia Securities Commission (BCSC).
The BC Capital Market Report 2021 shows that the total market value of B.C. public companies increased to $325 billion, the fourth consecutive year of growth. This followed even stronger growth in 2020, when capitalization rose 47 per cent to $286 billion.
“B.C. capital-raising, both private and public, as well as the market value of public companies, continued to grow,” said John Hinze, the BCSC’s Director of Corporate Finance. “Another indicator of the strength of the B.C. capital market in 2021 was the filing of a record number of prospectuses with the BCSC.”
The annually produced report provides a snapshot of the province’s capital market activity in the calendar year, including how much money was raised by B.C. companies and investment funds as well as how much was raised by non-B.C. companies and funds from B.C. investors.
Capital-raising by B.C. companies grew 41 per cent to $33.2 billion in 2021, with mining and other natural resource companies leading the way. The amount raised by prospectus increased 10 per cent to $12.4 billion, while the amount raised through private placement increased 69 per cent to $44.5 billion.
B.C. is home to 45 per cent of all companies listed in Canada, including one in five TSX-listed companies and more than half of all Canadian-listed venture companies, reflecting the province’s status as Canada’s primary incubator for new and growing public businesses. While B.C. has more Canadian-listed companies than Ontario, Alberta and Quebec combined, B.C.’s average public company tends to be smaller, with 30 per cent having a market value below $5 million.
The report provides details of capital-raising by sector for B.C. companies:
- Mining: Capital-raising increased 26 per cent in 2021, driven primarily by higher metal prices and investor demand. Mining was by far the largest capital-raising sector among B.C. companies, with 814 companies receiving $10.2 billion in investments, accounting for 31 per cent of the total raised by B.C. companies.
- Technology and communication: Capital-raising increased in 2021 by 68 per cent, to $8 billion, in large part due to offerings by Telus Corporation and a related company.
- Real estate: Companies raised $4.9 billion, a 75 per cent increase after a slight decrease in 2020.
- Biotechnology: This sector saw a 45 per cent drop in capital-raising, to $1.3 billion, after more than doubling in 2020.
- Cannabis: Capital-raising in this sector increased 89 per cent to $1.1 billion, following a 72 per cent decrease the year before.
Overall in 2021, the B.C. capital market – which includes capital-raising by B.C. companies and investment funds, as well as capital raised from B.C. investors – grew 17 per cent in 2021 to $158.5 billion, the fifth consecutive year of growth.
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
604-899-6854 or 1-800-373-6393 (toll free)
Learn how to protect yourself and become a more informed investor at www.investright.org