Canada’s IPO market set for a comeback in 2026, signalling renewed investor confidence
Banks report a growing pipeline of companies preparing to list in 2026 as equity markets strengthen, potentially reversing years of delistings on the TSX.
Copy link
By Torontoer Staff
Canada’s market for initial public offerings is poised to revive in 2026, after roughly four years of low activity. Bankers and exchange officials say renewed interest from technology, natural resources and fintech firms is arriving as equity valuations recover.
The pickup would mark a reversal of a multi-year trend in which high interest rates, inflation and regulatory hurdles pushed many companies to postpone listings or turn to private funding. A stronger IPO market would also signal broader confidence in the government’s pro-business agenda.
Why listings stalled
Companies largely avoided public markets after valuations fell during the period of elevated interest rates and inflation. That environment made listings more expensive and less attractive, while global uncertainties, including U.S. tariff worries and market volatility, reduced appetite for new offerings.
Canada’s market felt the impact more acutely because of a smaller pool of firms ready to list and some regulatory friction that added to costs and complexity for issuers.
Signs of revival
Several indicators point to renewed activity. The S&P/TSX Composite Index rose about 29 per cent in 2025, outpacing the S&P 500, and the market saw successful listings that have traded well post-issue. Bankers say the pipeline of companies considering IPOs is the strongest they have seen since 2021.
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. Companies will have more capital, more financial backing from international investors.
Michael Dehal, senior portfolio manager, Dehal Investment Partners at Raymond James
Rockpoint Gas Storage raised $704 million in October 2025 and is trading about 25 per cent above its IPO price, a performance underwriters say could encourage other issuers.
Successful IPOs can set positive precedents for future offerings. Rockpoint’s performance is encouraging, as investors evaluate future IPOs.
David Rawlings, Canada CEO, JP Morgan
Bank of Montreal, Royal Bank of Canada and TMX Group all say they are seeing more companies preparing to test the public-market waters, and many of those are aiming for sizeable raises.
- Consumer products
- Natural resources and mining
- Fintech
- Technology
It was a lack of supply, not a lack of demand for IPOs in Canada. That has changed dramatically over the last six months.
Peter Miller, head of equity capital markets, Bank of Montreal
Royal Bank’s head of Canadian equity markets, Jackie Nixon, said the bank is working on several listings it expects will come to market in 2026.
Remaining risks
The revival is not guaranteed. Post-issue trading matters for future offerings, and some recent listings have struggled. GO Residential Real Estate Investment Trust, which listed in July 2025, has lost about 25 per cent of its value since its IPO.
What really matters is if operating company IPOs can actually trade well post-issue.
Michael Ashley Schulman, partner, Running Point Capital Advisors
Other risks include persistent geopolitical or trade tensions, renewed market volatility, and ongoing regulatory or listing cost challenges that could slow momentum.
Why this matters for the Canadian economy
A healthier IPO market would inject new capital into Canadian companies and could help reverse the imbalance between listings and delistings on the Toronto Stock Exchange. Between 2023 and 2025, delistings consistently outnumbered IPOs, driven by take-privates, mergers and sector consolidation.
More listings could also attract foreign investment and support the government’s goals to boost productivity and expand trade partnerships.
What to watch in 2026
- Number and size of IPOs filed and completed on the TSX
- Post-issue trading performance of new listings
- Changes in foreign investment flows into Canadian equities
- Any regulatory or listing-cost adjustments from exchanges or policymakers
- Underwriter activity and the mix of industries pursuing public listings
Bankers and exchange officials say early 2026 will reveal whether the growing pipeline translates into a sustained revival or a short-lived uptick driven by a few large deals.
If the trend continues, Canada could see more capital available for scaling businesses and a gradual rebalancing of the TSX roster, but traders and company boards will be watching outcomes closely before committing to public listings.
IPOToronto Stock Exchangecapital marketseconomyMark Carney
