Royal Bank of Canada took the top spot for arranging stock sales in Canada last year, displacing Toronto-Dominion Bank in the slowest year for equity financings since 2008.
Bank of Montreal (BMO)’s BMO Capital Markets unit rose to second, with 46 sales that raised $4.87bn, while Toronto-Dominion’s TD Securities unit slipped to third.
'Last year - excluding 2008 - was one of the weakest we’ve seen over the last seven years', Peter Miller, head of equity capital markets in Canada for BMO Capital Markets, said in an interview in Toronto. 'All the uncertainty that’s around Europe and then China last year, with the commodity prices, have challenged the market'.
Canadian equity financings this year will be fueled by investor appetite for dividend-paying stocks and high-yield real estate investment trusts as low interest rates drive demand for higher returns, according to investment bankers.
'The same themes that played out last year are probably going to continue in 2013, with the demand coming from both retail investors and institutions', Sante Corona, head of equity capital markets at TD Securities, said in an interview from Toronto. 'That manifests itself in demand for dividend-paying common shares, REITs, preferred shares and convertible debentures. I don’t think that’s going to change'.
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