Growth Markets for Clean Technology
I was in New York City yesterday for the Clean Technology & Sustainable Infrastructure Investor Day. The event was hosted by The New York Society of Security Analysts (NYSSA) and our equity exchanges, Toronto Stock Exchange and TSX Venture Exchange, were actively involved as presenting sponsors. We were also pleased to be joined by fellow sponsors, and great partners of our exchanges, Hodgson Russ and Fasken Martineau DuMoulin.
It’s a top priority for TSX and TSXV to educate potential investors and key influencers on leading sectors in our business, like Clean Technology. We’re also pleased to work closely with our listed issuers to get them in front of these audiences. Each listed issuer is part of the success of our markets and collectively they convey an impressive value proposition.
We were proud to see six of our listed issuers in the spotlight yesterday:
- Algonquin Power & Utilities Corp (TSX: AQN)
- Azure Dynamics Corporation (TSX: AZD)
- Electrovaya Inc. (TSX: EFL)
- ISE Limited (TSX: ISE)
- Magma Iceland Corp. (TSX: MXY)
- Plutonic Power Corporation (TSX: PCC)
Each company had interesting perspectives on the fast-evolving sectors of transportation infrastructure and power generation. Their pursuit of more sustainable and efficient infrastructure to benefit the environment, while striving to create shareholder value, was of great interest to those in attendance.
We also benefited yesterday from a presentation by Rupert Merer, Analyst, Energy Technology at National Bank Financial. He had some compelling insight into the interconnection between Canada and the U.S. in the area of clean technology, and in particular with companies listed in Canada that have U.S. operations, business plans and market opportunities.
Mr. Merer is just one of the many analysts covering clean technology issuers on TSX and TSXV. With an average of seven analysts covering issuers in this sector with a market capitalization of $100 million to $500 million, there’s great visibility for many issuers in our markets.
The companies presenting yesterday were a sample of the 127 clean technology issuers on TSX and TSXV. We’re actually home to more publicly listed clean technology companies than any other exchange group in the world. The numbers we see from this vantage point tell an impressive story:
- $18 billion market capitalization
- $1.5 billion in equity capital raised in 2009
- 6 new listings so far this year
- $570 million raised in 2010 through over 40 financings
We’re also very encouraged to see the success of our issuers, especially some of the early stage companies… 30% of TSX clean technology issuers are graduates of TSX Venture Exchange. Their ability to grow within our two-tier market structure speaks to a healthy marketplace that understands this emerging sector and can well support these issuers at various stages of development.
Issuers on both markets also have the advantage of healthy liquidity and impressive growth in trading volumes. In fact, trading volume in the clean technology space has grown 35% over 5 years; far exceeding the 14% growth in trading volumes across our entire market over the same time span.
There’s no doubt that it’s exciting to be so closely involved in such a new and increasingly relevant sector. We look forward to seeing its continued growth and development and we’re committed to continuing to play a very active role.
All figures as at May 31, 2010
Filed under: Equity Listings, Equity Trading, TSX Venture Exchange, Toronto Stock Exchange