Capital-raising by B.C. companies grows 27 per cent in 2018

VANCOUVER, July 25, 2019 /CNW/ - The number of British Columbia-based companies listed on one of the Canadian exchanges grew 10 per cent in 2018, according to a new report from the British Columbia Securities Commission (BCSC).

The BC Capital Market Report2018 provides a snapshot of the province's enterprise economy, detailing how much money was raised by companies and investment funds in B.C., as well as how much was invested by B.C. residents, companies and other entities.

The increase in listed B.C. companies, to 1,407, was the biggest jump in Canada in 2018. B.C. has the most listed companies in Canada, though B.C.'s companies tend to be smaller, with nearly half having a market value below $5 million.

"B.C.'s capital markets continue to be an incubator for emerging companies, with our province now home to 44 per cent of Canada's listed companies," said Peter Brady, the BCSC's Executive Director. "Our robust venture markets are proving to be a significant competitive advantage for Canada in the global economy."

Much of the growth in the number of B.C. companies was driven by the cannabis industry, which raised $4 billion in 2018, up 280 per cent from the previous year, spurred largely by the federal government's legalization of cannabis. B.C. had 124 cannabis companies raising money in 2018, compared to 69 the year before.

Despite cooling in the housing market, investment in B.C. real estate companies remained steady, attracting $3.1 billion in investment, a one per cent increase from the previous year.

Meanwhile, B.C. mining companies raised $4.3 billion, a 27 per cent drop from the year before. Despite that decrease, mining remains the most active industry for capital-raising, followed by cannabis and real estate.  

B.C. companies raised $19.1 billion in 2018, 27 per cent more than the year before, while B.C.-based investment funds raised $18.5 billion, a 26 per cent decrease.

Overall investment in B.C. – encompassing capital-raising by B.C. companies and investment funds, and capital invested by B.C. residents, companies and other entities – held steady at $111 billion, compared to $112 billion in 2017.

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

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE British Columbia Securities Commission