The number of IPOs declined in markets around the world last year, thanks to many of the same factors affecting Canadian businesses, including uncertainty over U.S. tariffs, market volatility and high listing costs. Canada’s IPO market was especially hard hit, in part because of regulatory hurdles and a limited number of companies exploring new listings.
New IPOs and the strength of the equity market are a ‌barometer for the overall health of the Canadian economy despite U.S. tariffs. They signal that businesses have confidence in Canadian Prime Minister ​Mark Carney’s pledges to increase productivity and forge new trade and business partnerships around the world.
“When you have got more foreign investment coming into the country, our doors are open to everyone in the world, you’re definitely going to have a more attractive IPO market,” said Michael Dehal, senior portfolio manager at Dehal Investment Partners ⁠at Raymond James. “Companies will have more ‍capital, more financial backing from international investors.”
New IPOs could also help reverse a long-term trend on the Toronto Stock Exchange of more companies delisting than listing.
Last year’s biggest IPO, Rockpoint Gas Storage (RGSI.TO), opens new tab, raised C$704 million in October, building fresh hopes for a pickup in listings.
“Successful IPOs can set positive precedents for future offerings,” said David Rawlings, Canada CEO of JP Morgan, an underwriter of the Rockpoint deal.
He ⁠noted that Rockpoint is currently trading 25% above its IPO price.
“(It) is encouraging, as investors evaluate future IPOs,” he said.
STRONGEST SINCE 2021
The country’s main exchange, the Toronto Stock Exchange, ‍saw a decline in the number of listed companies in each of the past three years. There were only two IPOs in 2025 and a total of 55 delistings, largely due to deals ‌to take ‌companies private, along with mergers and acquisitions amid consolidation in the financial and energy sectors. Delistings also far outnumbered IPOs in 2023 and 2024.
Nonetheless, the main stock index, S&P/TSX Composite Index (.GSPTSE), opens new tab, surged about 29% in 2025, outpacing the S&P 500’s 16% gain, helped by a rise in the valuation of the big banks that represent a third of the market along with growth in mining stocks.

That shows that investors are eager to put their money into equity markets, even if companies have had their own reasons to avoid new stock ⁠listings. Now, Canadian firms exploring potential IPOs ⁠this year include companies in consumer products, ​resources, fintech and technology, according to Peter Miller, head of equity capital markets at Bank of Montreal (BMO.TO), opens new tab.

“It was a lack of supply, not a lack of demand for IPOs in Canada,” Miller said. “That has changed dramatically over the last six months.”
The IPO pipeline, Miller added, “is the strongest I’ve seen since 2021.”
Miller said his team at BMO is in talks with companies hoping to go to ‍market early in the year.
“There is definitely a growing pipeline of private companies that we spend time with who want to go public at some point in time,” said Royal Bank of Canada’s head of Canadian equity markets, Jackie Nixon. “We are working on a handful that we expect will go public in 2026.”
TMX Group, which operates the Toronto Stock Exchange, is also expecting a big uptick in stock market listings.
Bankers say ​they have been encouraged to hear that the companies testing the public-market waters are mostly looking to ‍raise large amounts of money.

But hurdles remain even after companies list shares publicly. GO Residential Real Estate Investment Trust (GOu.TO), opens new tab, for instance, has lost about 25% of its value since its IPO in July 2025.