Bloomberg: IPOX® Founder Josef Schuster on Canada’s IPO Market Outlook

Bloomberg reports on the challenges facing Canada’s IPO market, highlighting the difficult debut of GO Residential Real Estate Investment Trust, which raised $410 million in its Toronto Stock Exchange listing this July. Despite the deal being oversubscribed, shares have dropped 15% since their debut, reflecting broader market caution.

The report notes that Canada has seen only one traditional IPO this year, continuing a multi-year slowdown in new listings. By contrast, the US market has been buoyed by activity in sectors such as artificial intelligence and cryptocurrency, while Canada’s market remains dominated by financial services, energy, and mining companies. Analysts suggest valuation discounts in Canada relative to US peers may also play a role in investor hesitancy.

IPOX® Founder and CEO Josef Schuster offered perspective on the longer-term prospects of Canadian IPOs, emphasizing that investor sentiment tends to evolve more slowly than in the US:

“Canadian IPOs may not give you the huge initial pop like you have experienced in the US, but the real upside may be in the medium- to longer-term.”

He pointed to several examples of Canadian companies — including Groupe Dynamite, MDA Space Ltd., and Definity Financial Corp. — that initially struggled after listing but later delivered outsized returns. Schuster’s remarks underscore IPOX’s research-based view that patient investors can benefit from Canadian IPOs even when early trading is subdued.

The article also highlights that while individual IPO performance has been mixed, Canada’s broader equity market has remained resilient, with the S&P/TSX Composite Index up 14% in 2025, outpacing the S&P 500 Index’s 10% gain over the same period.

Read the full article by Geoffrey Morgan and Monique Mulima on Bloomberg: Canada’s Only IPO of 2024 Stumbles With Drop After Debut