Shopify-like IPO successes recoming rare in Canada, Nowlan says

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInvestorShopify-like IPO successes recoming rare in Canada, Nowlan saysThe Canadian market has been seeing a 'hollowing out' of smaller companies seeking to grow, he saidAuthor of the article:A pedestrian walks past Toronto Stock Exchange signage in Toronto’s Financial District on July 29, 2025. Photo by Peter J. Thompson/National PostCanada will struggle to find another stock-market success story like Shopify Inc. as the country grapples with a public-listing drought and a delisting trend, according to Daniel Nowlan at National Bank Capital Markets.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Canadian market has been seeing a “hollowing out” of smaller companies seeking to grow into larger and more globally meaningful firms, according to Nowlan, the firm’s vice chairman and managing director of equity capital markets, corporate and investment banking.This advertisement has not loaded yet, but your article continues below.He highlighted Shopify, which began trading on both the New York Stock Exchange and Toronto Stock Exchange in 2015 after a larger-than-expected initial public offering. The e-commerce software company grew into one of Canada’s largest firms by market capitalization, and is now worth roughly $300 billion, second only to Royal Bank of Canada, data compiled by Bloomberg show.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try again“It’s tough to imagine that happening today, starting with the size they did in growing to what they’ve become,” Nowlan said on a panel at the Toronto Global Forum on Thursday.He contrasted Canada’s capital-market environment with the U.S., where he says smaller companies that hold onto their listings can surge to valuations in the hundreds of billions of dollars.Going privateMost firms going private in Canada from 2020 to 2025 have cited issues like undervalued shares, low trading volume, excessive disclosure requirements and challenges getting access to capital, according to a Thursday presentation from the Institute for Governance of Private and Public Organizations.Nowlan put Dollarama Inc., which has a market value of about $56 billion, in the same camp as Shopify. He said it was “hard to imagine” the discount retailer listing today and becoming a global large-cap company in its business.This advertisement has not loaded yet, but your article continues below.Canada needs to do better in terms of encouraging people to invest and take risks, he said. He added he’s been hopeful about efforts to attract capital and is counting on officials to take more steps to push for Canadian investment. Nowlan took a break from his banking career at one point to work in government, including as chief of staff to former Conservative Party Finance Minister Joe Oliver.The Toronto Stock Exchange has been dealing with an IPO drought in recent years, and companies have also opted to leave it altogether. Since 2020, 351 companies have exited — with 41 delistings taking place this year, according to data from exchange operator TMX Group.Meanwhile, eight firms listed on the Toronto Stock Exchange this year via IPOs as of Sept. 30, and 19 moved there from the TSX Venture Exchange.Roughly two-thirds of the delistings since 2020 occurred because of mergers, TMX Group data show. Robert Peterman, chief commercial officer at the Toronto Stock Exchange, said by phone that there’s been more market consolidation and companies acquiring other publicly listed entities to grow.GFL Environmental Inc. is one of the more recent examples of a Canadian success story mulling a take-private deal as it conducts a strategic review. Montreal-based Lightspeed Commerce Inc. considered going private in the past before opting to stay public on the TSX.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.