The cleantech and renewable power sector on Toronto Stock Exchangeand TSX Venture Exchange has seen strong growth in 2009 in the face ofchallenging economic and financing conditions. With the listing of RamPower, Corp. in October, TMX Group equity exchanges have now surpassed$1 billion in equity financing for this fast growing sector. Theyear-to-date 2009 amount exceeds the full-year 2008 financings by morethan 100%.
“We have made significant efforts in the cleantech sector and it isgratifying to see that Toronto Stock Exchange and TSX Venture Exchangehave become the listing and financing destination of choice for largeand small cleantech businesses,” said Ungad Chadda, Senior VicePresident, Toronto Stock Exchange. “Our exchanges are number one in theworld in mining and energy, and we are being viewed as the idealfinancing markets for companies developing sustainable technologies andrenewable power projects.”
Also up dramatically is the number of financings; there were 73financings year-to-date September 2009 compared to 43 at the same pointin 2008, representing a 70% increase. Today there are 123 cleantechlistings on the two exchanges, compared to 102 at this time in 2008.
In addition to equity financing, 2009 has also been an active yearfor volume of shares traded for cleantech companies, demonstrating thestrength of secondary market trading on Toronto Stock Exchange and TSXVenture Exchange. Volume traded as at September 30, 2009 was up 21%compared to the same period in 2008.
On November 3, 2009, Toronto Stock Exchange held its third CleantechInvestor Day in Montreal, where leading public and private cleantechand renewable power companies met with members of the Canadianfinancial and investment community. The Toronto Stock Exchange iscarving a niche in the growing clean technology and renewable powersector, raising more than $1-billion through equity listings in theyear to October and attracting a growing list of internationalcompanies.
Ram Power is one of 21 foreign cleantech companies to have listed onthe TSX or TSX Venture Exchange. In the first nine months of 2009, theTSX and Venture Exchange completed 73 financings compared with 48 overthe same period in 2008. The number of listed cleantech companies roseto 123 compared to 102 at the end of last year.
Ungad Chadda, senior vice president of the Toronto Stock Exchangesaid there were a lot more listings in the pipeline. He said thelisting of Ram Power in October pushed the two exchanges above the $1billion-mark in equity financing for the cleantech sector, a recordwhich exceeded the value financed for full-year 2008 by 100%. Thevolume of cleantech shares traded on the two exchanges also increasedthis year, up 21% in the first nine months of the year compared withthe same period in 2008.
“Our exchanges are number one in the world in mining and energy, andwe are being viewed as the ideal financing markets for companiesdeveloping sustainable technologies and renewable power projects,” Mr.Chadda said. “We have made significant efforts in the cleantech sectorand it is gratifying to see that Toronto Stock Exchange and TSX VentureExchange have become the listing and financing destination of choicefor large and small cleantech businesses.”
He said the Toronto exchanges already had the highest number oflisted cleantech companies in the world. The rise in cleantechfinancing on the TSX comes despite problems in global financialmarkets. However, those problems may have helped the TSX attract newcompanies. Investors in the U.S. were very risk averse when it came togeothermal power because of the risks involved in drilling.