Québec Companies in Canadian Capital Markets: A Year of Growth Amid Structural Shifts

This is the first in a four-part series, published monthly throughout the summer, based on the report by the Autorité des marchés financiers (AMF) titled “Summary of Oversight and Regulatory Activities”, prepared by the Corporate Finance Division. Written by Dominique Mannella and Gilles Seguin, this series highlights key insights from the report. Stay tuned for the upcoming articles in June, July, and August!. 

In May 2025, the Autorité des marchés financiers (AMF) published a report on its oversight and regulatory activities for the year that ended on December 31, 2024.

The report highlights key developments in Québec’s public and exempt financial markets, including a record $18.5 billion raised through exempt financial market distributions and the first Toronto Stock Exchange (TSX) Initial Public Offering (IPO) by a Québec issuer since 2022. It also outlines the AMF’s efforts to enhance disclosure, support market efficiency and reduce regulatory burden while maintaining investor protection. An IPO in Canada is the process by which a private company offers its shares to the public for the first time on a Canadian stock exchange, requiring regulatory approval and a prospectus. The year marked notable growth for Québec companies listed on Canadian stock exchanges, with rising market capitalization despite a decline in the number of listed issuers. Exempt financial markets in Canada refer to private capital markets where securities can be sold without a prospectus, typically to accredited investors under specific exemptions set out in securities laws.

Market Capitalization Growth vs. Decline in the Number of Listings

In 2024, Québec issuers listed on the TSX and TSX Venture Exchange (TSXV) reached a combined market capitalization of $803.5 billion, up 12% from $717.4 billion in 2023; however, this increase was outpaced by the 18% growth in market capitalization for non-Québec Canadian issuers, which rose from $2.8 trillion to $3.3 trillion. As a result, Québec’s share of Canada’s total market capitalization remained relatively stable at 19%, slightly below its 2023 level (20%) and its share of Canadian GDP (19.9%).

While valuations increased, the number of TSX- or TSXV-listed Québec issuers fell by 8%, from 152 in 2023 to 140 in 2024, continuing a trend also seen across the rest of Canada. The Québec decline outpaced the national decline: the number of non-Québec Canadian issuers listed dropped by 4%, from 1,840 to 1,766. These figures suggest consolidation or delisting trends across Canadian markets, even as capital markets expand in value.

Cross-Listing and Alternative Markets

Québec issuers on the Canadian Security Exchange (CSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ) remained stable in number. CSE issuers saw a 113% surge in market cap to $158 million, while NASDAQ-listed issuers declined 15% to $1 billion.

 

Public Offerings and IPO Activity

Public market activity for Québec issuers rebounded in 2024. Although the total number of prospectuses filed in Québec dropped slightly by 4% (from 151 in 2023 to 145 in 2024), Québec issuers raised $1.6 billion through TSX or TSXV offerings, representing a fourfold increase from 2023 ($0.4 billion). In contrast, public distributions by non-Québec issuers in Québec declined by 4%, from $12.7 billion to $12.2 billion.

IPO activity also picked up, with four IPOs in Canada in 2024, including one TSX IPO by a Québec-based issuer—the largest of the year. This stands in contrast to 2023, when no Québec companies launched an IPO.

 

Exempt Market: A Surge in Institutional Investment

Québec companies raised $18.5 billion in the exempt market, a 64% increase from 2023. Most of the capital came from TSX/TSXV-listed and reporting issuers. Non-convertible notes were the dominant instrument. Investors residing in Ontario accounted for 58% of Canadian purchases. Québec investors contributed $25.4 billion, with $4.5 billion invested in Québec companies. Foreign companies continued to rely primarily on the accredited investor exemption (section 2.3 of Regulation 45-106), with 99% of their distributions to Québec purchasers exempt.

 

Robust and in Transition

Despite fewer public listings, Québec companies showed strong capital-raising performance. The growth in market capitalization and exempt financial activity indicates sustained investor confidence, though the dwindling number of listings and local investment remains a concern for regulators.

BCF’s Securities Law team is here to guide you and help you fulfill your capital markets needs.