VANCOUVER, BC, July 20, 2022 /CNW/ – The total market value of from British Columbia public companies grew 14% in 2021, hitting a record high, according to a new report from the British Columbia Securities Commission (BCSC).
The BC Capital Market Report 2021 shows that the total market value of BC public companies has risen to $325 billion, the fourth consecutive year of growth. This follows even stronger growth in 2020, when capitalization increased by 47% to reach $286 billion.
“BC’s capital raisings, both private and public, as well as the market value of public companies, continued to grow,” said John Hinze, director of corporate finance at BCSC. “Another indicator of BC’s capital market strength in 2021 was the filing of a record number of prospectuses with the BCSC.”
The report produced annually provides an overview of the province’s capital market activity over the calendar year, including the amount of money raised by BC businesses and investment funds as well as the amount raised by companies outside BC and funds from BC investors.
Raising of capital by British Columbia companies increased by 41% for $33.2 billion in 2021, with mining and other natural resource companies leading the way. The amount raised per prospectus increased by 10% for $12.4 billionwhile the amount raised by private placement increased by 69% to reach $44.5 billion.
British Columbia is home to 45% of all listed businesses Canadaincluding one in five TSX-listed companies and more than half of all venture capital firms listed in Canada, reflecting the province’s status as from Canada main incubator for new and growing public companies. Although British Columbia has more companies listed in Canada than Ontario, alberta and Quebec together, the average B.C. public company tends to be smaller, with 30% having a market value below $5 million.
The report provides details on capital raisings by sector for BC companies:
Mining: Capital raising increased by 26% in 2021, mainly due to higher metal prices and investor demand. Mining was by far the largest capital-raising sector among BC companies, with 814 companies receiving $10.2 billion in investments, representing 31% of the total raised by BC companies.
Technology and communication: Capital raising increased in 2021 by 68%, reaching $8 billionlargely through offerings from Telus Corporation and a related company.
Immovable: Companies raised $4.9 billiona 75% increase after a slight drop in 2020.
Biotechnology: This sector has seen a 45 percent drop in capital raising, for $1.3 billionafter more than doubling in 2020.
Cannabis: Capital raising in this sector increased by 89% for $1.1 billionafter a drop of 72% the previous year.
Overall, in 2021, the BC capital market – which includes the raising of capital by BC companies and investment funds, as well as capital raised from BC investors. British Columbia – increased by 17% in 2021 to reach $158.5 billionthe 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 by the administration of the Securities Law. Our mission is to protect and promote the public interest by promoting:
A fair securities market that deserves the public’s trust
A dynamic and competitive securities industry that offers investment opportunities and access to capital
Learn how to protect yourself and become a smarter investor at www.investright.org
SOURCE British Columbia Securities Commission
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