Going To Market: The Cost of IPOs in Canada and the United States

A strong initial public offering (IPO) market encourages a steady stream of new and innovative companies into the economy by providing the necessary financing for these companies to survive and grow. But is it cheaper to launch an initial IPO in Canada or the United States?

Document Highlights

Many Canadians would answer “south of the border.” This study shows that it is less expensive to do an IPO on the Toronto Stock Exchange (TSE) than on either the New York Stock Exchange or Nasdaq. There is also less underpricing of IPO issues on the TSE than on the senior U.S. exchanges.

This paper analyses costs of going public in Canada and the United States by comparing similar-sized IPOs completed on the countries’ senior stock markets during the 21-month period from January 1998 to September 1999.