Leaders from the Toronto Stock Exchange are on the ground at Diggers & Dealers looking to educate and lure local miners to their bourse amid an increase in dual-listing interest.
Leaders from the Toronto Stock Exchange are on the ground at Diggers & Dealers looking to educate and lure local miners to their bourse amid an uptick in dual-listing interest.
Paladin Energy, Westgold Resources, Firefly Metals are among the notable Australian companies to dual list on the Canadian exchange in the past 18 months.
There are 25 companies dual-listed on the Australian Securities Exchange and TSX, or its junior marketplace TSX-V. Its Canada's largest share market and is operated by TMX Group.
Among those in the pipeline is ASX-listed Alkane Resources, which is looking at a second listing in North America through its acquisition of TSX-listed Mandalay Resources.
Those Australian companies are seeking to target new investors and tap into pools of capital, according to TMX Group business development head Dean McPherson.
Fresh off the plane from Canada, Mr McPherson said they had seen a consistent rise each year in the number of Australian companies joining their market as they look beyond home soil.
“From our experience, large and medium Australian companies who are looking to execute on a strategy of project diversification tend to consider listing with us,” he said.
“Some people have asked, why wouldn't they list in the US? Simple, we have a significant advantages over the America stock exchanges.
“We have an environment that's very similar to Australia. We understand mining…we have an ecosystem similar to Australia that understands mining.”
Mr McPherson said most notably they were seeing base metal and precious metal companies looking to Toronto, especially around merger and acquisition activity in gold.
He said he’s also expecting to see some names in uranium assess a secondary listing on the TSX, where he said there was more interest and appetite from investors.
But equally, Canadian companies are increasingly eyeing the ASX with the active superannuation funds among the luring factors for foreign companies.
BDO global natural resources and energy lead Sherif Andrawes personally has six mining sector initial public offerings (IPOs) on his plate for the second half of the calendar year.
Of those, three are larger Canadian companies looking to list of the ASX.
Mr Andrawes said some life was beginning to emerge in the IPO market, which has remained largely subdued amid a downturn in new listings in recent years.
Global volatility and interest rate uncertainty has waned investor appetite for IPOs, reflected by the zero listings in the March quarter for the first time since June 2020, according to BDO.
“There are a couple [IPOs] that have Canadian elements to them, and there are others that are more local, but the Canadian part is an interesting one,” Mr Andrawes said on the sidelines of Diggers & Dealers.
“One of them is already listed in Canada, looking for secondary listing here, and one's large project that is Canadian based, but will have a primary ASX listing.”
Mr Andrawes said those companies were looking to raise between $40 million to $50 million to help fund their generally more advanced projects.
TSX's Mr McPherson and his full-time Australian representative head Luke Allshorn are preparing to open the Toronto Stock Exchange from Diggers & Dealers tonight.
