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ARTICLE · 22 MAY 2020

Securing Equity In Unsecure Times

Since the beginning of March, 15 companies within the S&P/TSX Composite Index have gone to market to raise capital.

CanadaFinance and Banking

Since the beginning of March, 15 companies within the S&P/TSX Composite Index have gone to market to raise capital. All but one did so by raising debt. By comparison, of the largest LSE listed issuers, 23 have raised equity and 10 have raised debt. It is clear – European issuers are favouring equity during this crisis.

Now is the time for Canadian issuers to raise equity.

Early in their response to the COVID-19 crisis, Canadian issuers focused on raising debt. But given the recent strength in the stock market and the risk debt poses to an issuer's balance sheet, prudent issuers should pivot while they still have the chance and fill their war chests by issuing equity.

Market commentators have drawn comparisons between the Great Depression and the possible economic fallout from COVID-19. Despite this comparison, stocks around the world have rebounded dramatically from their March lows. The S&P/TSX Composite Index is up over 30 per cent and the FTSE 100 Index,

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